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IRS making progress on backlog, however tens of millions stay unprocessed

The IRS is making progress on its backlog of unprocessed tax returns, however tens of millions stay, the company stated.

As of June 10, the IRS had accomplished round 4.5 million of the greater than 4.7 million particular person paper returns from 2021, and the company expects to complete error-free particular person filings from 2021 this week, it stated Tuesday.

The IRS has additionally processed a lot of the 2022 filings — greater than 143 million returns — and issued almost 98 million refunds price $298 billion.

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Nevertheless, the IRS nonetheless faces greater than twice as many unprocessed tax returns in contrast with a typical yr, the company stated.

There have been 11 million pending particular person returns as of June 10, together with filings obtained earlier than 2022 and new 2021 returns, based on the IRS.

“Finishing the person returns filed final yr with no errors is a serious milestone, however there may be nonetheless work to do,” IRS Commissioner Chuck Rettig stated in an announcement.

“We stay targeted on doing all the things potential to expedite processing of those tax returns, and we proceed so as to add extra folks to this effort as our hiring efforts proceed this summer season,” he stated.

Backlog must be ‘completely’ clear by year-end

The pileup, created by years of finances cuts, understaffing, pandemic-related workplace closures and added duties, ought to “completely” resolve earlier than December, Rettig stated in March, showing earlier than the Home Methods and Means Committee.

“As of in the present day, barring any unexpected circumstances, if the world stays as it’s in the present day, we will likely be what we name ‘wholesome’ by the tip of calendar yr 2022, and enter the 2023 submitting season with regular inventories,” he stated.

Rettig’s promise to Home lawmakers got here a couple of week after the company unveiled plans to rent 10,000 employees to sort out the backlog, with 5,000 new workers within the coming months.

Nevertheless, Ken Corbin, chief taxpayer expertise officer on the IRS, instructed the Home Oversight Subcommittee in Could that the company hadn’t but employed half of the 5,000 employees.

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