IRS Takes Drastic Action: Destroys 30M Paper Information Returns Due to Backlog
Introduction
The Internal Revenue Service (IRS) made headlines when it announced that it had destroyed about 30 million paper information returns in a bid to clear its backlog of unprocessed filings. This move has left many taxpayers confused and uncertain about how it will affect their tax filings. In this blog post, we’ll look at what caused the backlog, why the IRS destroyed the paper returns, and what taxpayers can do to avoid similar situations.
The Backlog
The COVID-19 pandemic had a significant impact on businesses and individuals alike, with many filing for extensions to complete their tax returns. The IRS received over 16 million extensions during the 2020 tax season, and this caused a significant backlog for the agency. The paper information returns, which include W-2s and 1099s, were piling up and not being processed in a timely manner.
The Destruction of Paper Returns
To tackle the backlog, the IRS made the decision to destroy about 30 million paper information returns that were submitted during the 2020 tax season. The agency cited several reasons for this decision, including the fact that the returns were duplicates or incorrect. Additionally, some returns were not mailed to the correct address, while others were not signed or had missing information.
The Impact on Taxpayers
The destruction of the paper information returns has implications for taxpayers and their tax filings. Those who submitted paper returns and did not keep copies are at risk of having inaccurate tax filings. The IRS advises that taxpayers who did not receive their refunds, tax credits or stimulus payments should check their online account or contact the agency to determine if they were affected.
How to Avoid Similar Situations
To avoid similar situations in the future, taxpayers are encouraged to file their returns electronically, as this is a more efficient and secure process. Electronic filing ensures that returns are filed accurately and promptly and reduces the risk of errors or delays. Taxpayers who prefer to file paper returns should ensure that they follow the correct procedures and guidelines and double-check that all required information is included.
Conclusion
The IRS destroying 30 million paper information returns is a drastic action that has left taxpayers uncertain about the implications for their tax filings. While the agency had valid reasons for the destruction, taxpayers should take steps to ensure that they don’t fall into similar situations themselves. Electronic filing is the best way to ensure accuracy and speed, but those who prefer paper filing should exercise caution and follow the guidelines closely. Remember, accurate and timely filings will ensure a smooth tax season and prevent any unnecessary delays or errors.
