The IRS currently faces a huge backlog, causing major frustration for taxpayers waiting on refunds, offers in compromise, and other tax concerns, along with IRS delays in processing. These issues can seem hopeless to cynical taxpayers, but solutions may finally be on the horizon.
In this three-part guide, we’ll take a close look at upcoming initiatives from the IRS and the expected impact these will have on taxpayers and businesses.
The Need for Additional Funding
The current IRS backlog stems from two main issues: a lack of sufficient funding for the agency, plus extra pressures handed down by the pandemic. The COVID-prompted issues will hopefully resolve themselves over time (and especially as the nation comes out of the latest surge). Staffing shortages, however, were problematic even before COVID hit.
The solution? Improved funding. Whether this will be achieved remains in question, although the Biden administration has proposed modest funding increases for both the next year and the upcoming decade, Congress has yet to act on these. With extra funding, the IRS can improve staffing and even invest in much-needed technological updates.
Keep Processing Centers Open
While this particular proposal relates directly to funding challenges, it’s imperative that the IRS keeps all tax processing centers open, when possible. Last year, the agency closed a site in Fresno, preceded by another closing in Cincinnati. This all stems from a consolidation plan, but critics believe that these closures make it more difficult for the IRS to process rebates quickly. The IRS apparently concurs as it has recently scrapped plans to close a tax processing center in Austin.
In the midst of huge IRS backlogs, working with an enrolled agent is more important than ever. At the Highland Tax Group, we can help you streamline complicated processes and bring your tax situation to a favorable close as quickly as possible. Contact us today to learn more.