More than 200 lawmakers are pushing the IRS to give taxpayers a break on penalties they’re racking up because of mail delays at the agency
IRS processing is being hampered by a backlog of some 15 million pieces of correspondence, including tax returns and documents dealing with taxpayers’ disputes with the IRS. The pileup started in 2020 as the coronavirus pandemic upended tax filing season, IRS staffing and the agency's ability to open, sort and answerThe unprocessed forms have in many cases led to automatic penalty notices, liens and more.
They asked Rettig for a series of steps to help alleviate what they called an “alarming” situation. The IRS could do so without congressional approval since no legal action is needed for administrative relief. Streamline the process for taxpayers affected by the pandemic to show reasonable cause for penalty abatement, without the need for written correspondence.
“This has made it impossible for frustrated taxpayers to find any help,” the lawmakers wrote. “When our constituents cannot get assistance from the IRS and TAS, they contact us, and we have our hands tied at this point as well.”Lawmakers, taxpayers and preparers have petitioned the IRS for various forms of penalty relief going back to 2020.