IRS Backlog and What is Being Done About Deadlines
Did you know the backlog of incoming IRS mail is estimated to exceed 10 million pieces? Further, the outgoing IRS notice backlog is estimated at 23.5 million pieces! That is a lot of IRS notices waiting to be sent to taxpayers. This is also problematic as the IRS has an outgoing mail capacity of only 1.5 million notices per week. As a result, millions of notices are starting to go out with old dates and old “respond by” dates and deadlines. This week, our firm began receiving IRS notices for clients dated the first week of April. At least some of these delayed notices have an insert in the envelope with the notice providing additional time to respond. As time goes on, it will be interesting to see how the IRS addresses potential deadline issues, especially relating to Collections Due Process Appeals and similar deadlines. We recommend documenting the date of receipt of all IRS notices.