Treasury Warns

The IRS is still dealing with backups in processing returns from the past two filing seasons. While the tax collector typically has about about 1 million pieces of unopened mail, including tax returns, in its backlog when starting a new filing season, it had 6 million unprocessed individual returns as of Dec. 23, the most recent date for which data is available on the agency’s website.

https://www.politico.com/news/2022/01/10/treasury-tax-filing…

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While the tax collector typically has about about 1 million pieces of unopened mail, including tax returns, in its backlog when starting a new filing season, it had 6 million unprocessed individual returns as of Dec. 23, the most recent date for which data is available on the agency’s website.

The author doesn’t understand IRS terminology and misinterpreted data. The IRS typically receives 1 million (physical) pieces of mail each week. The IRS has stated that they are opening mail within normal timeframes. “Unprocessed” returns does not mean returns that are waiting to enter the system, but also returns that haven’t completed processing. “Unprocessed individual returns include tax year 2020 returns with errors and those returns requiring special handling such as those that require correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC).” While the 6 million unprocessed returns at this time of year are more than in a typical year, I couldn’t find comparable data on the IRS website. Most of the information within the National Taxpayer Advocate and TIGTA reports measures performance as of the “end” of tax season - the filing deadline without extensions.

Ira

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