Paper Returns Backlogged
Reports are telling us that paper returns are resulting in long delays. The IRS was forced to suspend the processing of paper tax returns, and as of mid-May, they are estimating a backlog of 4.7 million paper returns.
The IRS is reopening some of its operations, but it is not clear when it will be able to open and process all of these returns. So for now, they sit in mail facilities. This news from the Taxpayer Advocate Reports.
Systems Not Always Accurate
Further delays are resulting from mistakenly flagged returns by the IRS processing filters. Tax returns are passed through these filters designed to detect identity theft and other types of refund fraud. Some of the filters produce results that are false-positives. More than half of the returns held up by this process are actually entitled to the refunds being claimed. Taxpayers are often asked to submit documentation to substantiate their claims, but the IRS has not opened or processed many of these responses.
Getting IRS Assistance Can Be A Challenge
Taxpayers seeking assistance have faced difficulties in getting any. IRS Accounts Management telephone lines were shut down, as were their mail facilities. That left the IRS.gov site and automated phone lines. Again, the IRS has started opening some of its facilities, but it is going to take time before they catch up!
Additional problems include notices going out late with response due dates already past.