06 Jun The IRS Is Having To Answer For Itself Again
30 million, yes, million – unprocessed paper forms that were received via mail by taxpayers were destroyed before being opened. These forms, including 1099, 1098, W-2, and the like were destroyed by the IRS in March 2021 because the staff could not “keep up” with the workload during COVID according to Treasury Inspector General for Tax Administration.
The IRS claims that there were no negative consequences to taxpayers and it was a one-time event, yet if you happen to be one of the many taxpayers now receiving correspondence from the IRS that you owe for incorrect filings or failure to file, I’m sure you’ll disagree.
Missing information returns are causing a “mismatch” at the IRS,
delaying refunds because the agency can’t verify details on a taxpayer’s returns.
Tax practitioners like our team at DeHoek & Company, PLLC, are experiencing the negative consequences. We are seeing clients with a variety of tax problems that need to be cleared up based on missing paperwork that was previously filed with the IRS by mail and on time. To add insult to injury, there can be a substantial amount of money being held up for both individual tax filers and business owners.
Lawmakers on both sides of the aisle are demanding more answers and assurances from the agency and its chief. One House member is even calling for the IRS commissioner to be fired. It remains to be seen if true reform will happen, but for now, dealing with the IRS is not for the faint of heart! Read more here; https://bit.ly/3NZx33N.