IRS struggles to process returns and resolve cases, while funding is at risk
- IRS still facing issues with processing amended tax returns, answering phone calls, and resolving identity theft cases
- Backlog of unprocessed amended returns has quadrupled
- Taxpayer-correspondence cases have more than doubled
- IRS employees only answered 35% of calls received
- Newly hired IRS employees in need of proper training
- Funding boost from Inflation Reduction Act being used to make improvements
- Calls for redirecting funding from enforcement to improving taxpayer services
- IRS urged to prioritize reducing paper-processing backlog
- 2024 filing season begins on Jan. 29 with better customer service and tech options
- IRS working to recover from decades of underfunding
The Internal Revenue Service (IRS) is still facing significant challenges in processing amended tax returns, answering taxpayer phone calls, and resolving identity theft cases, according to an annual report from an independent watchdog within the agency. Despite a boost in funding from the Inflation Reduction Act, the IRS is experiencing delays in assisting identity-theft victims and has a backlog of unprocessed amended returns. The report also highlights the doubling of taxpayer-correspondence cases and the low percentage of calls answered by IRS employees. The agency’s hiring spree has resulted in new employees who require proper training. The report calls for comprehensive training and emphasizes the importance of adequate resources for the IRS to improve taxpayer services. The funding provided by the Inflation Reduction Act is at risk of potential cutbacks, and the report suggests redirecting some of the enforcement funding to enhance taxpayer services. The IRS is urged to prioritize reducing its paper-processing backlog. Despite these challenges, the IRS aims to provide better customer service and tech options for the upcoming filing season. The agency has been working to recover from decades of underfunding.
Public Companies: Internal Revenue Service (N/A)
Private Companies:
Key People: Erin M. Collins (leader of the organization assigned to protect taxpayers’ rights under the Taxpayer Bill of Rights), Daniel Werfel (IRS Commissioner)
Factuality Level: 7
Justification: The article provides information about the IRS’s slow processing of amended tax returns, answering taxpayer phone calls, and resolving identity-theft cases. It includes statistics and quotes from the annual report to Congress by Erin M. Collins, who leads the organization assigned to protect taxpayers’ rights. The article also mentions the funding boost provided by the Democrats’ Inflation Reduction Act and the criticism from GOP critics. Overall, the article presents factual information, but it may have a slight bias in favor of the IRS’s perspective.
Noise Level: 7
Justification: The article provides information on the ongoing issues with the Internal Revenue Service (IRS) in processing amended tax returns, answering taxpayer phone calls, and resolving identity-theft cases. It mentions the funding boost provided by the Democrats’ Inflation Reduction Act but also highlights the delays and backlog that still exist. The article includes statements from both IRS leaders and GOP critics, providing different perspectives. It also mentions the need for proper training for new IRS employees and the potential cutbacks in funding. Overall, the article stays on topic and provides relevant information, but it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The article does not provide information on specific financial markets or companies impacted.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the Internal Revenue Service’s slow processing of amended tax returns, answering taxpayer phone calls, and resolving identity-theft cases. While it pertains to financial topics, it does not describe an extreme event.
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