House Democrats Call on the Internal Revenue Service to Clear the Backlog.
With the Internal Revenue Service ready to begin taking 2021 tax returns on Jan. 24, Rep. Eric Swalwell (D-CA) joined 80 other House Democrats last week in pressing IRS Commissioner Charles Rettig to handle a backlog of more than 6 million returns from the previous year.
According to the representatives’ letter, the IRS had yet to process 6.3 million individual returns and 2.3 million modified returns for the 2020 tax year as of last month.
Furthermore, many taxpayers were yet to receive unemployment compensation, Child Tax Credit payments, or Economic Impact Payments, according to the letter.
“The IRS backlog is endangering people who may be unable to finish their mortgage paperwork or apply for student loans because they cannot furnish the requisite tax transcript,” Swalwell added. “With the start of the new tax filing season just around the corner, the IRS must resolve this backlog and guarantee that it is ready for the coming season.”
Many of the delays have been attributed to the COVID-19 epidemic, according to the IRS.
The IRS is urged to “develop a plan to efficiently and effectively process the backlog in mailed tax returns, as well as assist [the Taxpayers Assistance Service] in the hiring and training of new taxpayer advocates, and to tell Congress of that plan,” according to the letter.