THE Internal Revenue Service has about 2.5 million of unopened paper-filed income tax returns. Total pieces of mail (including income tax returns) stands at about 5 million pieces. This number is even down compared with 12 million in June and 23 million pieces in March 2020. Amusing, but listen.
IRS Commissioner Charles Rettig described the Agency’s efforts to dig out from a mountain of unopened mail that accumulated during coronavirus office shutdowns in the spring. Remember too that IRS had to cope with extra returns from people who don’t normally file but had to file tax returns to receive stimulus checks.
There’s another concern here, actually a bigger worry: taxpayers waiting for refunds that they desperately need to survive these pandemic times. Commissioner Rettig stated that 70% of filers receive refunds at an average of $2,740 as of late July 2020.
This pile of unopened mail is not a surprise considering President Trump’s love for the IRS. President-elect Biden will have to properly fund an agency that actually brings more money, a lot more money, than it spends. Think cost-benefit. Of course, you and I would rather appropriate zero budget so the IRS can’t audit you but, come on, the Internal Revenue Service serves a noble purpose – collect revenues to fund our schools, health programs, aid for the poor, repair roads and bridges, and simply sustain our government.
This pile of unopened mail is staggering but not surprising considering budget cuts, aging computer systems and a workforce that shrunk over the years. Agents, auditors, appeals officers, managers, administrators and clerks have transferred out or retired but have not been replaced due to prior hiring freezes. The Agency is gasping for air and needs more funds to operate. It needs a gentler and kinder (no pun intended) Joe Biden to do its job.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].