Facing tax returns problems? Know why had IRS put nearly 30M tax returns for manual processing
Are you also one of the taxpayers who are facing constant delays in the processing of your tax returns? Have you logged in to your tax return a long time ago but still not received your returns? There are numerous problems that are going on with the internal Revenue Service due to which they have been forced to shift the tax written procedure for manual processing that requires endless hours from the employees and thorough verification to avoid mistakes. This is one of the major reasons why you are facing frequent tax return problems.
A few of the known reasons as to why manual processing is undertaken as the more convenient option by the IRS are as follows-
Outbreak Of Coronavirus
First and foremost, the effect of the ongoing Coronavirus has affected the majority of the working sectors in the country, and so IRS is no exception to it. It faced endless hours working from home and reduced operations within the office, which resulted in a major backlog of return requests and other complaints.
Pending Tax Returns From 2019
Due to the outbreak of COVID-19, in the last few months of the closing of the financial year 2019-2020, the tax return requests from 2019 started piling up as pending due to no or very low operational activities being carried out within IRS. This directly affected the current financial year tax return request as the officials from IRS are working towards resolving the pending tax returns for 2019-20, before moving on to the current requests.
Recent Tax Changes
A recent law change affecting the tax rate and deduction brackets has managed to make big alterations in business-related expense deductions, increased rate of deduction on standardized working, removal of personal exemptions, etc. These recent changes have increased the requirement of thorough re-checks from the IRS employees, thus delaying the overall tax return proceedings greatly.
Outdated Technology
As per the information available online, the system used by the IRS to process your taxes is approximately 60 odd years old. This is one reason why the tax return procedure is facing delays. Additionally, it is also the reason why the IRS has decided to shift its tax return request to manual processing.
It can be a tough spot to be in for all businesses and taxpayers, especially small business owners, and so seeking help from services like The Accounting & Tax Company. Tax consultants in New York and other cities along with international tax consultants in New Orleans and other cities are a part of such services and offer helpful advice to make the most of these tax-related queries. At present, according to reports the amount of tax return requests on paper have reduced from 3,540,486 to approximately 2,144,347 as of March 2021.
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