The IRS backlog is 6-8 months for paper-based filings

You may have heard that the IRS has a significant backlog, going back as far as 2019 tax returns.

The rumors are true, but here are a few more things you need to know about the back up and how to deal with an issue if your paperwork is caught in the mix.

Why the IRS Backlog?

The IRS currently has more than 1 million 2019 and earlier paper-based tax returns waiting to be processed.  Additionally, more than 10 million pieces of paper filed correspondence letters are waiting to be processed, which all adds up to a 6-8 month backlog.  This is because COVID has forced thousands of agents to work from home and others to practice social distancing protocols.

Will this affect my 2020 tax return?

If you e-file then the backlog shouldn’t affect you. If you file a paper-based return you most certainly will be affected by the backlog.

I responded to a letter the IRS sent me, will the backlog affect me?

Yes.  All paper-based correspondence with the IRS is affected by the backlog., and (in my opinion) the backlog will continue grow now that tax season has begun.

I haven’t received my 2019 refund or heard from the IRS on another matter.  What do I do?

You can call the IRS, but be prepared for long wait times to reach a live agent - often 45-60 minutes.  If the wait time exceeds 60 minutes then your will be automatically disconnected and you’ll have to call another time.

Call 1-800-829-1040 to speak to a live agent.  They are available Mon-Fri, 7AM to 7PM.  My experience is to call right at 7AM on Tues-Fri, or late afternoon on Thurs-Fri.  Mon & Tues are the worst time to call.

How do I prepare for the call?

Not being prepared ahead of time is painful in terms of time wasted.  If you call the IRS have your current and prior year tax return available as well as any correspondence they sent you.

Will the IRS call or chat with me?

NEVER!  The IRS never calls taxpayers and they don’t chat either.  Hang-up on anyone calling representing themselves as from the IRS.  Also, the IRS does NOT accept tax payments over the phone and they’ll NEVER ask for your credit card number.

What if I just ignore an IRS notice?

Not a good idea.  Ignoring a Notice of Tax Due eventually may result in the IRS seizing funds from your bank account to pay taxes owed.  That said, there is a specific process they follow before they get to the point where you may receive a Notice of Intent to Seize.  That process from your first notice to Notice of Intent to Seize is about 6 months.

Stay tuned as I continue to post other resources that are available to help you resolve tax issues.