The IRS is inundated with volume and while there are many factors contributing to this, it is overwhelming to the Service. While they are working hard to remedy this in multiple ways, the level of service is at its lowest historically, with more calls coming in daily than ever.

Hiring and training take time. It takes more than 12-18 weeks to hire and train people to answer phones and assist callers. The automated call back program has been successful, but the number of people in the cue is limited to the number of assistants available. The number of calls coming in regarding the Child Tax Credit program are exacerbating the problem.

Paper returns have piled up – there are 5.5 million Form 1040s and over 4 million business returns that have been opened but not processed. The goal is that by year end, the paper returns will be processed; however, there are an additional 4 million returns anticipated by mid-October.

The late December changes affected the 2021 filing season. The reconciliation of the EIP payments is anticipated to be fixed within the IRS computer system and they are hoping for the same with the Child Tax Credits. Furthermore, the IRS is looking to send out notices to taxpayers verifying the child tax payments. This data is expected to also be available on the IRS portal.

In summary, the IRS is beyond busy, and it’s getting even more challenging to keep up.