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IRS Problems Become Taxpayer Problems

By
Services for Real Estate Pros with Tudor Financial Group, LLC

The Internal Revenue Service continues to be significantly behind in processing returns, payments and issuing refunds. We have many clients still waiting for their refunds going back to 2020 income tax returns filed back in February and March 2021.

IRS is experiencing the same problems as the rest of the country—not enough US workers willing to work for their income as opposed to collecting unemployment benefits and other benefits expanded by the pandemic. The largest collection agency in the world is not immune to these qualified employee shortages.

IRS has been trying to ramp-up their hiring of new employees as well as trying to entice former IRS employees to re-engage with the agency. This is made more difficult when considering more than 52,000 IRS employees are expected to leave or retire over the next five years. As a result, according to a recently released report from the Treasury Inspector General for Tax Administration (TIGTA), “the IRS continues to rehire former employees with conduct and performance issues.”

As tax resolution professionals, we have access to special lines which normally enable us quicker access to the IRS in attempting to resolve our clients’ tax problems. However, we are even having difficulty in getting our phone calls answered and properly addressed. At one point this year, IRS received 1,500 calls per second. It’s been reported that only 3% of the calls from taxpayers reached an IRS phone assister. This is all a function of under staffing.

I think an interesting point the taxpaying public needs to understand is that when natural disasters and other Federally declared disasters, IRS call center personnel are called upon to man FEMA centers. This significantly reduces the number of IRS employees available to help with taxpayer problems and questions.

President Biden has proposed that Congress provide up to eighty (80) billion dollars to the IRS. This is to be spent on hiring and training additional IRS personnel to step up enforcement and collections. However, as we know, throwing money at around is not the only answer in solving these issues. IRS has significant problems beyond their budget and hiring woes. Commissioner Rettig must do a better job in allocating the resources now available to fix the immediate problems. It is unacceptable for the wealthiest country in the world to not be able to adequately respond to the taxpayers. If you agree, I suggest you write to your Senator and Congressional member and ask them to make specific improvements in the way they deal with taxpayers. These types of responses seem to get results.

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