As of late December 2021, the IRS had a backlog of 6 million individual income tax returns and 2.3 million amended individual tax returns
January 28, 2022 - Washington, D.C. –U.S. Senators Ron Wyden and Jeff Merkley this week joined colleagues to call on the U.S. Department of the Treasury and the Internal Revenue Service (IRS) to provide penalty relief for taxpayers in Oregon and nationwide amid extensive, ongoing processing backlogs at the IRS.
Senator Ron Wyden (D-Oregon)
“While the COVID-19 pandemic has strained every federal agency, the impact on the IRS has been particularly severe,” Wyden, Merkley and the lawmakers wrote Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig. “As of December 23, 2021, the IRS continued to have a backlog of 6 million Forms 1040 (Individual Income Tax Returns) and 2.3 million amended individual tax returns. In addition, the IRS has 2 million Forms 941 (Employer Quarterly Tax Returns) that must be processed before the nearly 500,000 amended Forms 941 can be processed.”
The lawmakers noted the delayed processing of amended returns has been particularly devastating to small businesses whose applications for emergency loans from the Small Business Administration have been caught in limbo nearly two years after the COVID-19 pandemic began.
“Recognizing the extraordinary challenges of the COVID-19 pandemic, in addition to the IRS operating with antiquated technology and a constrained budget, we find the current situation alarming. We stand ready to support the IRS and look forward to hearing how we can help you address any obstacles facing the agency. However, we respectfully request the IRS consider the following measures to bring immediate relief to taxpayers, and reduce the backlog, during this tax filing season,” the lawmakers added. “...While we recognize no single action will alleviate issues that have resulted from difficulties at the IRS spanning administrations of both political parties, these steps would provide our constituents with greater certainty as we enter this year’s filing season.”
The letter was led by Sens. Bob Menendez, D-N.J. and Bill Cassidy, R-La. Along with Wyden and Merkley, it was signed by Sens. Cory Booker, D-N.J., Michael Bennet, D-Colo., Richard Blumenthal, D-Conn., Sherrod Brown, D-Ohio, Ben Cardin, D-Md., Tom Carper, D-Del., Chris Coons, D-Del., Catherine Cortez Masto, D-Nev., Tammy Duckworth, D-Ill., Kirsten Gillibrand, D-N.Y., Tim Kaine, D-Va., Amy Klobuchar, D-Minn., Patrick Leahy, D-Vt., Cynthia Lummis, R-Wyo., Joe Manchin, D-W.Va., Chris Murphy, D-Conn., Jacky Rosen, D-Nev., Debbie Stabenow, D-Mich., Chris Van Hollen, D-Md., Mark Warner, D-Va., and Raphael Warnock, D-Ga.
Full text of the letter is HERE.
Source: Senator Ron Wyden