The IRS’s $3-Billion Problem

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92% of paper returns stuck in the backlog.

By CPA Trendlines Research

Tax preparers would be wise to advise their clients to e-file this year. According to the Government Accountability Office and the Taxpayer Advocate Service, the IRS is not keeping up with paper returns.

In fact, it seems to be barely trying.

MORE: Hunker Down: The IRS Backlog Isn’t Going Away Anytime Soon | The IRS Studebaker Bomb | Imagine IRS ‘Concierge’ Service. Just Imagine. | IRS Has Recruiting Problems, Too
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The COVID-19 pandemic is only part of the problem. Yes, of course, last year, with IRS offices shuttered and phones shut down for months, a backlog built up. By the end of the year, “IRS had a significant backlog of returns and taxpayer correspondence,” according to the GAO.