What to Know About the Latest IRS Technical Difficulties

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Massive Technical Difficulties at the IRS: What Does This Mean for Your Tax Situation?

There’s no denying that the global pandemic has caused its fair share of issues for the IRS, where everything from staffing shortages to complicated stimulus programs have made it all but impossible to keep up with demand. Now, as if things aren’t bad enough, the agency is dealing with some hardcore technical difficulties.

All this is understandably frustrating for everyday taxpayers. The more you know about the realities of the backlog, the more strategically you can plan your tax approach. Keep reading to learn why the IRS is struggling and what its latest challenges might mean for your personal tax situation.

Spotlighting IRS Customer Service Challenges

The latest IRS issues were examined during a recent Senate Finance Committee. This session was referred to as “Spotlighting IRS Customer Service Challenges,” and it involved witnesses from the U.S. Government Accountability Office and the American Institute of CPAs. A variety of concerns were discussed, but IT modernization was among the most noteworthy.

According to IRS National Taxpayer Advocate Erin Collins, modernized digital infrastructure systems could make a world of difference for the IRS. Currently, however, the agency allocates a mere 1.4 percent of its funding towards modernization. Seemingly simple fixes such as updating dust collectors could help considerably by preventing paper jams. Meanwhile, poor scanners have resulted in huge losses from untimely check deposits.

How Does This Impact You?

In all likelihood, you’ve already felt the impact of the technical difficulties highlighted above. Delays are unfortunately common, with far too many taxpayers still waiting on refunds from last year. Similar — or worse — delays are possible in 2022. Meanwhile, penalty abatement may prove difficult to obtain. No matter your dealings with the IRS, you can expect to struggle as you attempt to get in touch with IRS representatives.

Technical difficulties are all but guaranteed to continue at the IRS. To bridge the divide, you need strategic guidance from a professional who intimately understands the inner workings of this complicated agency. An enrolled agent from the Highland Tax Group can help; don’t hesitate to get in touch.