Recent report from the Internal Revenue Service reveals how the pandemic has diminished the functions of an already underfunded agency.
The IRS has issued its progress report for 2021. In it, the IRS spotlights several agency-related issues caused by the COVID-19 pandemic. While the agency is working to respond to these issues, the lack of funding means you can expect continued delays with processing tax returns, refunds, and with customer service.
For more information, contact the experienced tax lawyer today. Porter Law Office, LLC focuses on resolving tax controversies for businesses and individuals.
The progress report indicates that the IRS lost critical full-time positions in 2020 and 2021. The IRS is now operating with less revenue agents and revenue officers. These individuals examine tax returns (that is, they conduct audits), and they perform collection activities. The agency also lost special agents at Criminal Investigations who investigate tax-related crimes.
IRS Commissioner Chuck Rettig stated that the IRS is still working through tax returns filed in 2021. The agency cannot handle the unprecedented number of telephone calls. Mr. Rettig acknowledges that the IRS is unable to deliver the amount of service and enforcement that is needed to effectively and efficiently do its work.
Despite the challenges, the report mentioned some successes from 2021. The IRS distributed a third round of economic stimulus payments. The agency implemented several of the American Rescue Plan directives; it issued a Spanish-language Form 1040; it boasted a 93 percent conviction rate within its Criminal Investigations division; and the agency collected $4.1 trillion in gross tax receipts.
The IRS is working to do better in 2022, but without additional resources, it stands to be seen how much improvement will actually occur.
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In spite of its budgetary issues, the IRS is still auditing taxpayers, issuing levies, and aggressively collecting taxes. If you have received a notice from the IRS, contact the experienced Columbus, Ohio tax lawyer at Porter Law Office, LLC today for a case evaluation. With an advanced degree in taxation, Mr. Porter can help you understand your options to deal with the IRS in this economically uncertain time. Contact us today.