Plan to End IRS Backlog in 2022
On Thursday, March 10, 2022, Deputy Secretary of the Treasury Wally Adeyemo and IRS Commissioner Charles P. Rettig visited the Philadelphia IRS campus to deliver their plan to eliminate the IRS backlog in 2022.
As we reported on January 12, 2022, the IRS had a backlog that included:
- 6 million unprocessed original individual returns (Forms 1040);
- 2.3 million unprocessed amended individual returns (Forms 1040-X);
- more than 2 million unprocessed employer’s quarterly tax returns (Form 941 and Form 941-X); and
- about 5 million pieces of taxpayer correspondence.
Highlights of the plan
In order to eliminate the backlog by the end of the year, the following will be implemented:
- Hiring 10,000 new employees. Job fairs will be held in Kansas City, Austin and Ogden with the goal of filling 5,000 of those positions;
- Expedited hiring process for critical positions;
- Shifting the focus of 700 employees to create a surge team to process new returns at their Austin, Kansas City and Ogden campuses;
- Maintain initial surge team (created in February 2022) to process amended returns and taxpayer correspondence;
- Commitment from the Biden administration to provide long-term funding to stabilize the IRS;
- Paying overtime for mandatory overtime to 6,000+ employees; and
- Pursing additional contractor support to help with original return processing, mailroom operations, transactions and input of paper returns into the IRS system.
Increase Taxpayer Assistance
In addition to internal controls, the IRS has been working on improving the client experience with increased taxpayer assistance to reduce processing delays. As we reported on February 9, 2022, the IRS resumed limited face-to-face help on the second Saturday of the month, which began on February 12th. While no appointment is required, be certain to take all necessary documentation and ID with you.
The in-person meetings will take place at specific Taxpayer Assistance Centers across the country. Below we have listed centers in proximity to our three offices that will be open in April:
IRS Tax Assistance Centers open on Saturday, April 9, 2022:
Delaware: none
Florida: 4 locations
850 Trafalgar Ct., Maitland/Orlando, FL
51 SW First Ave., Miami, FL
7850 SW Sixth Ct., Plantation/Fort Lauderdale, FL
3848 W. Columbus Dr., Tampa, FL
New Jersey: 20 Washington Place, Newark, NJ
Pennsylvania: 600 Arch Street, Philadelphia, PA
Before you go to an IRS center in person, be certain to check the IRS website for updated information regarding locations and times.
Additional Taxpayer Services
In addition to opening tax centers on the second Saturday of the month during tax season, the following improvements have been implemented:
- To improve accurate returns, the IRS sent letters to taxpayers with the amounts received in the third Economic Impact Payment and the advance Child Tax Credit;
- 2,000 contractors were deployed to respond to taxpayer questions regarding Economic Impact Payments and the advance Child Tax Credit;
- An expanded self-service portal for online payment agreements, requesting payment transcripts, requesting Identity Protection PINs, and updating personal information; and
- $41 million in funding to support 330 organizations to help with volunteer income tax assistance organizations and tax counseling programs for the elderly and underserved.
- Expanded phone coverage to improve customer callbacks to 70%.
Updated Technology to Reduce IRS Backlog
Much of the backlog is due to the need for manual processing. The following automated processed have been implemented.
- In 2022, the IRS developed an automated tool to reduce manual review by an IRS processing employee;
- Temporary suspension of 40 form notices, including automated collection notices, to taxpayers; and
- Online live assistance and automated voice and chat bots.
Questions?
Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.
DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update COVID-19, COVID-19 Business Resources, COVID-19 Client News Alerts and other related communications are intended to provide general information, including information regarding legislative COVID-19 relief measures, as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
