IRS backlog

[Dd852]

just fyi - my paper-filed return (received by the IRS August 1 [I'm an overseas filer so had an automatic extension]) was finally processed this week according to my IRS online account. That's a pretty remarkable backlog!

 

[Alan]

Yes, lots of similar complaints on the expat forums I frequent. Very difficult to efile from overseas as programs such as TurboTax and TaxAct can’t be bought without a credit card associated with a US address. I have one linked to a forwarding service with a US address, but I have heard that when it comes time to pay then for TaxAct you can enter the first line of your foreign address following by the rest of the TaxAct business address. This seems to satisfy both the credit card company and TaxAct.

 

[Midpack]

My 1040X was filed 3/20 and processed 12/26/22, and my return is not that complex. The IRS is historically understaffed, let’s leave it at that…

 

[athena53]

I filed my 2019 return around March 2020- had to wait for the brokerage downloads, as usual. I filed on paper- never liked the idea of wrapping up all the details in the electronic form and tying it with a bow to present to the gubmint computers. I was expecting a large refund since realized investment gains were less than anticipated.

So... I waited, and waited and waited, and the common advice was "don't e-file if you filed a paper return". My brother the retired tax accountant told me to e-file. I had the refund in less than a month.

I'm still waiting to get a nasty letter from the IRS telling me they got my paper return and I won't get a duplicate refund.

 

[dixonge]

We have a domicile address (in a state we've spent maybe two months in?) and a mail forwarding service. A bit expensive (less than $200/yr), but it makes a big difference w/ government dealings (SS, IRS, etc.) and banking/credit cards. I do sometimes have to use a VPN when connecting online for various things, but that's relatively easy to do now.

 

[Foghorn Leghorn]

Flat tax. Abolish the IRS, loopholes and audits

 

[ShokWaveRider]

Flat tax. Abolish the IRS, loopholes and audits

Sort of, a basic across the board flat tax will not work. BUT, a slight modification would.

1) A tiered flat tax based on income. Say 5%, 10%, 15%, 20%, 25%? TBD.
2) Absolutely NO Deductions, allowances, write offs or modifications, NO
Exceptions.
3) 1 page 4 line Tax Return. Income, Tax Rate, Tax Withheld, Tax Payable.
4) Tax based on residency not Citizenship.

Too easy for our "Gotta Justify Our Jobs" leaders. They may have to actually pay taxes as they could not write off their private jet trips to and from Washinton.

 

[Aerides]

Flat tax. Abolish the IRS, loopholes and audits

Let's not derail this thread.

 

[frayne]

The IRS is historically understaffed, let’s leave it at that…

Ditto

 

[MRG]

My understanding is that the IRS is only introducing technology on the electronic side, paper is going to attrition away.

 

[cathy63]

They've actually made pretty good progress on the pandemic backlog this year and are almost back to normal. https://www.irs.gov/newsroom/nation...xpayer-impact-of-processing-and-refund-delays

By Dec. 23, the IRS had further reduced its unprocessed paper backlog of original individual returns to about 400,000 and original business returns to about 1 million. This significant reduction in the paper return inventory will enable the IRS to begin processing paper-filed tax year 2022 returns during the upcoming filing season. That contrasts with the previous two years, when the IRS was not able to process current-year returns until months after the filing season had ended.

 

[scrabbler1]

They've actually made pretty good progress on the pandemic backlog this year and are almost back to normal. https://www.irs.gov/newsroom/nation...xpayer-impact-of-processing-and-refund-delays

You beat me to it, Cathy63. I saw this as part of an appearance on C-Span a few days ago by Erin Collins who heads the Taxpayer Advocate's office.

I filed my 2021 paper return last February, awaiting a pretty large refund ($750). Checking my online IRS account, as well as the "Where's My Refund?" link within the IRS website, I saw little progress on my return for a few months, nothing beyond a "We received your return but have nothing more to say about it" message.

But around late June, the message changed to something more encouraging: something like like, "Expect a refund by such-and-such date," which was only a few weeks in the future. Then, in July, the message gave me a more specific date to expect the refund to appear in my bank, as I had elected ACH payment. And by that date, it was there, and with interest!

 

[Bigdawg]

My understanding is that the IRS is only introducing technology on the electronic side, paper is going to attrition away.

Believe it when I see it. My line of work was suppose to go "paperless" in the early/mid 90's. We burn through more paper now than we ever did back then.

On another note, I'm surprised the FAA and IRS (mutiple other agency's as well) are not more up to date with tech.

 

[JoeWras]

1040X filed electronically May 20, 2022.

IRS letter for interest owed rec'd Jan 12, 2023.

I was in the queue behind Midpack.

 

[grasshopper]

Just to pile on, TT 1040X filed 4/15/2022, processed by IRS 9/20/2023.

 

[Gumby]

Just to pile on, TT 1040X filed 4/15/2022, processed by IRS 9/20/2023.

Good job. I wish I could predict what the IRS would do, and when.

 

[Midpack]

1040X filed electronically May 20, 2022.

IRS letter for interest owed rec'd Jan 12, 2023.

I was in the queue behind Midpack.

And the silly thing, I got $63.19 in interest from the IRS - taxable for 2022…

 

[VFK57]

I filed my 2018 1040X in May 2019 by mail and got a refund from IRS in July 2022. There were two attempts instead of refund to bill me twice for the ISO sold that year (ISO is taxed via my wife W-2 at that year but reported by E trade as a regular trade as well).

 

[cbo111]

Why do people still file paper returns to the IRS? My DM always filed paper and did so in March of 2021. In December 2021 she got a nice letter from the IRS saying she failed to file and owed a small amount. This created some emotional turmoil. She spent several hours on the phone trying to resolve it and finally got an IRS rep to admit, "it's probably in the storage warehouse waiting to get processed. You can expect a letter in the next 6 months." She did finally get the resolution letter.
I'm pretty sure the IRS really wants all of us to file electronically to reduce their processing costs.

 

[VFK57]

Why do people still file paper returns to the IRS? My DM always filed paper and did so in March of 2021. In December 2021 she got a nice letter from the IRS saying she failed to file and owed a small amount. This created some emotional turmoil. She spent several hours on the phone trying to resolve it and finally got an IRS rep to admit, "it's probably in the storage warehouse waiting to get processed. You can expect a letter in the next 6 months." She did finally get the resolution letter.
I'm pretty sure the IRS really wants all of us to file electronically to reduce their processing costs.

I file our Taxes on line via Turbo Tax. However, when you need to file supporting documents, I do not know how to do it on Turbo Tax, when there are 7 - 10 pages related to the proof of overcharge.

 

[JoeWras]

I file our Taxes on line via Turbo Tax. However, when you need to file supporting documents, I do not know how to do it on Turbo Tax, when there are 7 - 10 pages related to the proof of overcharge.

Yes, I was able to file my amended (1040X) electronically specifically because I didn't need to send any documentation in. My documents were there already (1099-R). I just put the wrong number in the wrong place and was able to say so in the explanation line.

If I had to add supporting documents, it would have kicked to paper.

 

[aaronc879]

Yeah the backlog is crazy. IRS is way understaffed and getting worse yet some think no new agents should be hired. Unbelievable.

 

[38Chevy454]

Hiring processing personnel is different than hiring auditors. That's where the rhetoric comes into play.

 

[rk911]

Flat tax. Abolish the IRS, loopholes and audits

this! ^^^^^^^

 

[Gumby]

this! ^^^^^^^

Did you not read Aerides' post? There is a topic of this thread. One's desired tax regime is not it. The moderators will close the thread and sanction the wrongdoers if the thread hijacking continues.