IRS has found that up to a worth of $24 m tax return is still pending, most of them are from the 2020 tax season. Hence at present, rectifying the backlog is of utmost importance for the tax authorities. Let us see what steps are being taken to resolve the issue.
Issues due to the backlog
Due to the enormous tax return backlog, the IRS agency has to deal with a broad scope of challenges. For example, lack of financial help to carry out proper staff training and maintenance. Also, the number of investors interested in financing technological development in the sector has been reduced.
The steps were taken by IRS
At the time of the 2021 filing season, the IRS took some significant steps to address the same issue. However, due to the lack of needed funding and resources, dealing with a huge unprocessed return wasn’t possible. But, this year, authorities have given special instructions, including direct hiring of up to 10k employees. The only aim of the IRS at this time is to cut the presence of any pending tax returns.
Direct hiring of 10,000 employees
As reported by WGN9, to get the situation under control as soon as possible, the IRS is planning to hire up to 10,000 new employees. There might be 80 different job roles including entry-level clerical workers, tax attorneys, and others. Moreover, there will be a cut down on certain requirements for the recruiting process. The sole reason for all these efforts is that the authority needs to get the employees to start their job the earliest.
Will the approach be successful?
Due to the more significant amount of tax returns that have been pending since 2020, the thought of clearing it within a few months is not possible. According to some government officials, the entire process can take a whole year to finish. Hence, we can expect the procedure to stretch towards the end of 2022.
Among the hired employees, positions for technological professionals are also being filled. They can help upgrade the IRS’s existing infrastructure so that the agency can work more efficiently.