Scary IRS Shortage, Should Shreveport Worry This Tax Season?
Every year a majority of Americans eagerly wait for their tax return to hit their accounts. I know I check the status of my tax return at least 12 times before it actually hits my bank account. A large amount of Americans rely on refund checks to pay bills, delays could cause several Americans to face evictions this year.
A Study Shows Tax Refunds are a Financial Lifeline for Many Americans.
A 2019 study from the JP Morgan Chase Institute showed us just how crucial refunds are for Americans. The study found that refunds amount to "nearly six weeks of take-home income for the average family getting a refund". Yes, that number is astounding, clearly, Americans rely on refunds, and they do so in a desperate manner.
Will Shreveport Be at the Mercy of a Bogged-down IRS This Tax Season?
According to Business Insider, Treasury officials are warning that "it'll be a difficult process for the under-resourced agency because of historical underfunding". Weren't we already seeing the IRS struggle before the pandemic?
The IRS Was Already Dealing With Several Challenges Before the Pandemic
It is no secret that the systemic challenges that the IRS faced were only made worse with the new demands that the pandemic brought. How does the IRS recover? Before you say "That's not my problem" remember, you would be ticked if your tax return was delayed by several weeks. So yes, your peace of mind and money in your bank account depends on the IRS running efficiently.
How Much Work Did the IRS Put In During the Pandemic?
The IRS sent out several rounds of economic relief throughout the pandemic, which includes the monthly child tax credit checks along with direct payments, although this may feel like it was years ago, this was all done last year, 2021.
How Understaffed is the IRS in 2022?
It's bad. Warning, the numbers are scary. According to Business Insider "During the first six months of 2021, the agency had under 15,000 people to manage the over 240 million calls it got." Those numbers mean that for every 16,000 calls, the IRS has one person to answer them.
The IRS Has 1 Person for Every 16,000 Calls.
The scariest part is that IRS workers are using technology 1960's for processing all of our precious tax returns. So we have staffing levels at the IRS that have remained the same since 1970 and use technology older than many of us have been alive. Where do we pull the panic lever?
A Top Senate Democrat Ron Wyden of Oregon thinks that Americans will need some extra time to file taxes this year. Sen. Wyden is a Democrat in charge of the Senate Finance Committee. Sen. Wyden has never been for drastic cuts to the IRS.
Drastic IRS Cuts Led to the Agency Being Understaffed and Underfunded.
The IRS is facing a serious situation and at this point, we can only hope and pray that it's smooth sailing in one of the roughest tax seasons the IRS has ever faced. However, don't hold your breath.