IRS and what do they really do with all their power

[Furu]

I just wish that the IRS would process my return. Filed a paper return as I have forms that are not eligible for electronic filing. IRS states on their website that there is a 6 week processing backlog for paper returns.
I called them in July asking why I had not received my refund (yes I screwed up and had a refund, my goal is to never have a refund EVER.) They told me it takes 6 weeks to process. I told them 6 weeks was long come and gone. They then said they were behind more than 6 weeks and I should just wait. I created an IRS website logon (another nightmare story) to try to monitor when it was processed. Finally in August I decided I would ask my Congressional representative for help. After 5 weeks I still had no response from their office so I contacted my Congressional rep again. Was told my case was going to be brought up with the IRS the next day as to why the IRS still had not processed my return. Found out that the IRS told the congressional staffer helping me that they had not processed the return yet and that I just had to wait until they do, that they have up to 6 weeks after filing. Yes it was 5 months (21 weeks) after filing when the IRS told my congressional rep's office that they had 6 weeks and that I should be patient.
HOW MUCH INCOMPETENCE CAN WE STAND? If I owed them they would have processed it and be charging me interest and penalty.

Has anyone else had this happen where their return is not process for a VERY long time? I googled "delay in IRS processing return" and boy did I get an eye opener of stuff. Of course everything you read on the internet is true but several individuals told stories of over a year had passed and they still had not had their return processed. I am glad I have proof that it was delivered to the IRS (thank you USPS documentation). Read the IRS rented trailers to store returns in while they wait to process them. I am sure that Covid may have slowed it down a little but this is for the birds.

Just curious how many others have had this happen? What did you do if anything that was helpful?

 

[fishheadbob]

Other side of the coin... I filed two amended returns on paper in June with checks attached. They still haven't cashed the checks or processed the returns. I have been told that between Covid work from home rules and understaffing they are months and months behind in processing anything that isn't computer filed.

I guess you could ask your Congressman to increase funding for the IRS so they could have more collectors and auditors but you wouldn't win any popularity contests with that suggestion.

 

[square1]

My 2019 return wasn't processed until after some people received their 2020 refund.
IRS owes me over $3500 based on my 2019 & 2020 returns.
They've had time to send me 3 letters acknowledging they owe me the money, but haven't found time to write a check. Yet when they mistakenly thought I owed them ~$900 they charged me $4.29 in interest when my check showed up a few days after their deadline (was postmarked on due date).

They're broken.

 

[jeff9366]

The IRS is understaffed.

The 12 million documents exposing illegal tax avoidance by the ultra-wealthy, called the Pandora Papers, succeeding the Panama Papers, shows that some significant portion of the very wealthy avoid taxes by illegally concealing billions in assets and income generated by these assets. The vastly wealthy understand understaffing the IRS is their best insurance against being discovered as tax cheats.

It is in the interest of ultra wealthy tax cheats that the middle class should be upset with the IRS. Understaffing the IRS achieves this.

It is basic to our progressive tax system that those with incomes in the top 10% fund our government through higher tax rates than the middle class. Unfortunately, some significant portion of the very wealthy shirk this obligation illegally, year after year. The IRS could provide better service and our federal and state budget deficits would be significantly less, if the IRS was better staffed on a multi-year basis.

 

[Torvy]

Or we could just have a tax code that required a miniscule staff at the IRS. It is in the interest of politicians to make things difficult so they can 'fix' problems and get re-elected. This is not entirely a partisan issue as both sides have blame in this.

 

[Jstpssng]

You're talking to the wrong people... The Taxpayer Advocate Service Is Your Voice at the IRS | Internal Revenue Service

I doubt that they can help either. But just think of all of the penalties and interest you're acrrueing because they are late processing and late paying.


I can't believe that I typed that with a straight face.

 

[Hay Dude]

I keep hearing the government is hiring thousands more IRS agents. Bureaucracy is roaring back and stronger than ever.
Isnt it great!

 

[riptides]

We just got our refund this week.

Yes they are understaffed, yes Treasury is hiring, yes Treasury is making efforts to modernize and overhaul the tax collection systems.

 

[Frankenkubota]

The IRS is understaffed.

The 12 million documents exposing illegal tax avoidance by the ultra-wealthy, called the Pandora Papers, succeeding the Panama Papers, shows that some significant portion of the very wealthy avoid taxes by illegally concealing billions in assets and income generated by these assets. The vastly wealthy know understaffing the IRS is their best insurance against being discovered as tax cheats.

It is in the interest of ultra wealthy tax cheats that the middle class should be upset with the IRS. Understaffing the IRS achieves this.

It is basic to our progressive tax system that those with incomes in the top 10% fund our government through higher tax rates than the middle class. Unfortunately, some significant portion of the very wealthy shirk this obligation illegally, year after year. The IRS could provide better service and our federal and state budget deficits would be significantly less, if the IRS was better staffed on a multi-year basis.

that is the standard excuse. we are doing a lousy job, have always done a lousy job, will continue to do a lousy job so....fund more positions.

how about....shrink the govt and let the private sector do it?

 

[kenmbz]

I just got notice from my local taxes for a miss back in 2018. I guess they could blame Covid too?
Seems the forms never got to them and it takes years for them to process??

 

[riptides]

that is the standard excuse. we are doing a lousy job, have always done a lousy job, will continue to do a lousy job so....fund more positions.

how about....shrink the govt and let the private sector do it?

Have you seen the budget wars of late? No? Well maybe check out funding for civilian agencies over the last 20 years. Add in modernization, policy changes over that time, and human resources and your comment looks like the standard easy fix. It's not just funding.

Private industry? Yeah...no thanks. You really want some private corp in your wallet and business? No way.

 

[Buppies]

The blame the rich story is getting old do some research you will find that is not the case

 

[Frankenkubota]

Have you seen the budget wars of late? No? Well maybe check out funding for civilian agencies over the last 20 years. Add in modernization, policy changes over that time, and human resources and your comment looks like the standard easy fix. It's not just funding.

Private industry? Yeah...no thanks. You really want some private corp in your wallet and business? No way.

budget? what's that.

here's my standard response.

1. tell me 1 thing the government does well...please.

2. Virtually everyone i know is very close to or related to a government employee. many guys i know can do what they do for a living only because Mrs works for the county.

 

[riptides]

budget? what's that.

here's my standard response.

1. tell me 1 thing the government does well...please.

2. Virtually everyone i know is very close to or related to a government employee. many guys i know can do what they do for a living only because Mrs works for the county.

I'd say your going off topic.

Congress sets the budget for the Treasury.

Congress does not understand the basics of budget or financials. IMHO. Else we would not have appropriations and funding/budget battles every quarter.

I'd say overall the federal government works just fine if given a mission and funding to do it.

My tax history sort of proves that point in an on topic sort of way. I owe, I don't owe...my personal and financial variables change over time and the IRS seems to get their pound of flesh accordingly.

 

[Hay Dude]

I just heard the IRS is hiring more agents to examine our bank accounts and our banking activity. Anyone with a bank account with over $600 in it.

 

[ultrarunner]

Do you have the option of applying to future payments?

It's not like anyone is missing out on interest at today's rates.

I like to be paid up... it is a character flaw but for those I help we will often make all quarterly payments with first quarter... amounts are little but it gives these seniors great peace of mind...

I believe income tax returns is a very US thing... friends in other countries with very good jobs never required to file as tax due deducted at time earned and these countries have very high VAT on purchases.

It keeps it simple and pay as you go... plus less work for tax preparers...

 

[notaz3]

Flat tax would be the easiest way to make sure everyone paid "their fair share", and would make it easy to file.