Despite clearing a backlog of 8 million returns, the Internal Revenue Service still faces major challenges in processing all original, error-free 2021 individual tax returns received last year.
Over $298 billion in refunds were issued in 2022 by the IRS, which processed more than 143 million returns, but still had millions of paper returns to process due to a significant backlog at the beginning of the year.
Secretary of the Treasury Janet Yellen this month warned that the agency was "under siege" and called on Congress to approve $80 billion for the agency to upgrade antiquated equipment, deal with the backlog, and pursue unpaid tax invoices worth $600 billion.
As it tries to keep up with the increased workload, the agency said it hired 1,500 new employees and added thousands of contractors to support its work.
22 June 2022
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