NEW from me: Lawmakers have asked the IRS to do a lot this year, after a decade of starving its budget, and as a result it’s been dropping some balls — which almost always turns out badly for the low-income taxpayers who count on refunds and stimulus checks to make ends meet. 1/
The big problem is this number: On January 29, 6.7 million 2019 tax returns were still being processed. That means long-delayed refunds, and stimulus payments that will have to be claimed as tax credits, when they can also be offset by other federal debts. 2/
But it gets worse. Frequently, low-income tax clinic staff say, checks aren’t processed as quickly as returns — and balance due notices are going out automatically anyway, panicking taxpayers who worry about their bank accounts being levied even though they paid on time. 3/
A host of other functions, from processing ITIN numbers for foreign nationals who work on visas to powers of attorney for tax practitioners to access their clients’ accounts, are running weeks or months behind schedule as well. 4/
Will the situation get better? The prospects don’t look good, with a likely new round of stimulus checks to process, and an already-delayed 2020 filing season. Meanwhile, many federal tax clinics are still closed. (The IRS and Treasury didn’t respond to requests for comment.) 5/
But without substantial investment in technology and manpower, experts say the agency won’t be able to carry out its fundamental job of collecting the revenue needed to run the federal government in a fair and efficient way. ANYWAY HERE’S THE STORY: propublica.org/article/the-ir…
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