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214 in Congress Support IRS Penalty & Collection Relief Coalition

  • Written by T. Steel Rose, CPA

“While the COVID-19 pandemic has strained every federal agency, the impact on the IRS has been particularly severe,” wrote the group of lawmakers to Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig. “As of December 23, 2021, the IRS continued to have a backlog of 6 million Forms 1040 (Individual Income Tax Returns) and 2.3 million amended individual tax returns. In addition, the IRS has 2 million Forms 941 (Employer Quarterly Tax Returns) that must be processed before the nearly 500,000 amended Forms 941 can be processed.”

The lawmakers noted the delayed processing of amended returns has been particularly devastating to small businesses whose applications for emergency loans from the Small Business Administration have been caught in limbo nearly two years after the COVID-19 pandemic began.

“Recognizing the extraordinary challenges of the COVID-19 pandemic, in addition to the IRS operating with antiquated technology and a constrained budget, we find the current situation alarming. We stand ready to support the IRS and look forward to hearing how we can help you address any obstacles facing the agency. However, we respectfully request the IRS consider the following measures to bring immediate relief to taxpayers, and reduce the backlog, during this tax filing season,” the lawmakers added. “...While we recognize no single action will alleviate issues that have resulted from difficulties at the IRS spanning administrations of both political parties, these steps would provide our constituents with greater certainty as we enter this year’s filing season." 

This effort is supported by the Tax Professionals United for Taxpayer Relief Coalition, which includes the American Institute of CPAs (AICPA), National Association of Enrolled Agents (NAEA), Padgett Business Services, H&R Block, Latino Tax Professional Association, National Association of Tax Professionals (NATP), National Society of Tax Professionals (NSTP), National Society of Accountants (NSA), National Society of Black Certified Public Accountants (NSBCPA), National Conference of CPA Practitioners (NCCPAP), Diverse Organization of Firms Advocacy Committee, National Association of Black Accountants (NABA), and Prosperity Now. 

“While the COVID-19 pandemic has strained every federal agency, the impact on the IRS has been particularly severe,” wrote the group of lawmakers to Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig. “As of December 23, 2021, the IRS continued to have a backlog of 6 million Forms 1040 (Individual Income Tax Returns) and 2.3 million amended individual tax returns. In addition, the IRS has 2 million Forms 941 (Employer Quarterly Tax Returns) that must be processed before the nearly 500,000 amended Forms 941 can be processed.”

The lawmakers noted the delayed processing of amended returns has been particularly devastating to small businesses whose applications for emergency loans from the Small Business Administration have been caught in limbo nearly two years after the COVID-19 pandemic began.

“Recognizing the extraordinary challenges of the COVID-19 pandemic, in addition to the IRS operating with antiquated technology and a constrained budget, we find the current situation alarming. We stand ready to support the IRS and look forward to hearing how we can help you address any obstacles facing the agency. However, we respectfully request the IRS consider the following measures to bring immediate relief to taxpayers, and reduce the backlog, during this tax filing season,” the lawmakers added. “...While we recognize no single action will alleviate issues that have resulted from difficulties at the IRS spanning administrations of both political parties, these steps would provide our constituents with greater certainty as we enter this year’s filing season." 

This effort is supported by the Tax Professionals United for Taxpayer Relief Coalition, which includes the American Institute of CPAs (AICPA), National Association of Enrolled Agents (NAEA), Padgett Business Services, H&R Block, Latino Tax Professional Association, National Association of Tax Professionals (NATP), National Society of Tax Professionals (NSTP), National Society of Accountants (NSA), National Society of Black Certified Public Accountants (NSBCPA), National Conference of CPA Practitioners (NCCPAP), Diverse Organization of Firms Advocacy Committee, National Association of Black Accountants (NABA), and Prosperity Now.

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