Nearly 7 million tax returns haven't been processed by the IRS because of stimulus changes
IRSis behind in processing tax returnsfor nearly 7 million Americans.
- Changes in the December and March
stimulusbills account for the delay, as does a cut in IRS staffing.
- Lawmakers have asked the IRS to extend deadlines and remove requirements on filing amended returns.
In December, Congress passed a $900 billion stimulus package that included $600 stimulus checks the IRS had to distribute. The more recent passage of the
According to IRS data, 6.7 million tax returns have not yet been processed in 2021, but in 2020, only around 2 million returns faced processing delays, reflecting the effects of the stimulus changes.
IRS spokesman Robert Marvin told The Washington Post on Friday that while most refunds take 21 days to be issued after filing season starts, some refunds may take longer.
"Many factors can affect the timing of your refund after we receive your return," Marvin said. "Some tax returns take longer to process than others. For example, returns with an error, incomplete information or those affected by theft or fraud may take longer to process."
In addition, the Government Accountability Office found in a March 1 report that from 2010 to 2019, IRS staffing was down by almost 23% and its budget was cut by 20%, factoring into the processing delays that must be resolved manually.
"IRS's overall 2020 performance was significantly impacted by its reliance on manual processes such as for paper returns, and its limited ability to process returns remotely while processing centers were closed," the report said. "As a result, as of December 2020, IRS had a significant backlog of unprocessed returns and taxpayer correspondence."
Democratic lawmakers have expressed concern with the backlog the IRS is experiencing, and the effects the backlog has on taxpayers who need their refunds to stay financially afloat. House Ways and Means Committee Chair
More recently, 21 Democrats, led by Senate Majority Whip Dick Durbin, called on Friday for the IRS to remove the current requirement of an amended tax return for taxpayers who have already filed and want to account for tax relief in the stimulus bill.
"We recognize the challenges of implementing this change in tax law during filing season, particularly as millions of Americans have already filed their tax returns for 2020," the letter said. "This underscores the need for Treasury and the IRS to take every action to ensure that all eligible individuals, including those who have already filed their 2020 tax return, are aware of and able to receive this critical relief."
Biden's stimulus plan included $1.9 billion in additional funding for the IRS, but the agency has yet to respond to lawmakers' concerns on processing delays.
- 'Quiet quitting' is a bad idea, experts say. Here are 6 things you can do instead to get the same results if you're looking for better work-life balance – or to lighten your workload
- Wipro, Infosys, Tech Mahindra revoke offer letters given to freshers: Reports
- Reliance Jio and Airtel 5G prices may be affordable for now but expected to increase after wider rollout
- Omnichannel becomes omniscient as retailers gear up for revenge festive celebration
- Redmi Pad Review: A decent tablet for the masses
- Electronics Mart India IPO is subscribed 1.69 times on day 1
- Big B’s best movies are back on the big screens - Here are 11 you can watch
- Reliance Jio to begin beta trial of 5G in four cities on Dussehra with unlimited data
- Tata Tiago Electric Car
- HCL Tech
- World Heart Day 2022
- Apple Tablets in Amazon Sale
- RBI Repo Rate
- Akash Ambani
- Amazon festival Sale
- Upcoming new Mobile in October
- Amazon Festival Sale
- Best Companies for Work
- India's Richest People
- RBI Interest Rate hike
- Upcoming Smartphone in 2022
- Top 10 Colleges in India
- Top 10 Airlines in World