Thursday, December 9, 2021

THE IRS IS TOTALLY FU-ED!

 

The excessive total shut-down of the IRS in 2020, in reaction to the COVID-19 pandemic, has resulted in substantial delays and backlogs in terms of processing 2019 and 2020 original and amended returns and processing correspondence.  This has caused substantial agita, to say the least, for taxpayers and tax professionals.  And generated additional financial costs for taxpayers.

A client recently received a letter from the IRS that began –

Dear Taxpayer:

Our records indicate that we received correspondence from you on July 27, 2021, concerning your Form 1040 for the period(s) {FYI – 2018} shown above.  We are unable to determine if your problem was resolved satisfactorily.

If your inquiry has not been resolved, please resubmit your information.”

The inquiry had not been resolved, or even properly processed or responded to.  It appears we have to waste our time resubmitting everything all over again.  Which just adds to the backlog and the problem.

It is clear that the IRS is totally FU-ed! 

If not already done, the IRS NEEDS to immediately cease all collection activity on all alleged outstanding balances for all returns until this serious problem is fixed.

Let us hope the damage done to the IRS by the excessive shut-down and closures is not irreparable. 

Going forward, the IRS needs to develop a plan in case we are ever faced with a similar situation – an international pandemic – again.

TTFN











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