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IRS making progress on backlog, however thousands and thousands stay unprocessed

Charles P. Rettig, commissioner of the Inner Income Service, testifies in the course of the Senate Finance Committee listening to titled The IRS Fiscal 12 months 2022 Finances, in Dirksen Senate Workplace Constructing in Washington, D.C., June 8, 2021.

Tom Williams | Pool | Reuters

The IRS is making progress on its backlog of unprocessed tax returns, however thousands and thousands stay, the agency said on Tuesday.

As of June 10, the IRS had accomplished round 4.5 million of the greater than 4.7 million particular person paper returns from 2021, and the company expects to complete error-free particular person filings from 2021 this week.

The company has additionally processed many of the 2022 filings — greater than 143 million returns — and issued practically 98 million refunds value $298 billion.

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Nevertheless, the IRS nonetheless faces greater than twice as many unprocessed tax returns in comparison with a typical yr, the company mentioned.

There have been 11 million pending particular person returns as of June 10, together with filings obtained earlier than 2022 and new 2021 returns, according to the IRS.

“Finishing the person returns filed final yr with no errors is a serious milestone, however there may be nonetheless work to do,” IRS Commissioner Chuck Rettig mentioned in an announcement.

“We stay centered on doing every thing doable to expedite processing of those tax returns, and we proceed so as to add extra folks to this effort as our hiring efforts proceed this summer time,” he mentioned.

Backlog ought to ‘completely’ clear by year-end

The pileup, created by years of price range cuts, understaffing, pandemic-related workplace closures and added duties, ought to “absolutely” resolve before December, Rettig mentioned in March, showing earlier than the Home Methods and Means Committee. 

“As of in the present day, barring any unexpected circumstances, if the world stays as it’s in the present day, we might be what we name ‘wholesome’ by the tip of calendar yr 2022, and enter the 2023 submitting season with regular inventories,” he mentioned.  

Rettig’s promise to Home lawmakers got here a couple of week after the company unveiled plans to hire 10,000 workers to deal with the backlog, with 5,000 new staff within the coming months.

Nevertheless, Ken Corbin, chief taxpayer expertise officer for the IRS, informed the Home Oversight Subcommittee in Might that the company hadn’t but employed half of the 5,000 staff.

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