IRS Erases Last Season's Backlog, But Still Faces 2022 Crush

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IRS Erases Last Season's Backlog, But Still Faces 2022 Crush
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During the 2020 budget year, the IRS processed more than 240 million tax returns, according to the latest IRS data.

WASHINGTON — The Internal Revenue Service said Tuesday that it will have erased its backlog of last season’s tax returns by the end of this week.

The agency has faced a well-publicized backlog of tens of millions of tax returns and clogged customer service phone systems, which leaders have attributed to decades of underfunding and antiquated internal computer systems.“To date, more than twice as many returns await processing compared to a typical year at this point in the calendar year, although the IRS has worked through almost a million more returns to date than it had at this time last year,” the agency said in statement Tuesday.

That’s on top of an IRS workforce that is the same size it was in 1970, though the U.S. population has grown exponentially and the U.S. tax code has become increasingly complicated. “Despite this progress, there are real challenges ahead,” the letter said. “Because the IRS entered this filing season with a significant backlog, millions of paper returns received in 2022 have not yet been processed.”

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