Massive IRS backlog triggers premature collection notices

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Massive IRS backlog triggers premature collection notices
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IRS delays triggered some premature collection notices

The IRS warns tax refunds could be delayed due to staffing shortages and processing backlogs. FOX Business' Gerri Willis with the latest.is prematurely sending some Americans collection notices even though they filed their returns, as the agency works to wade through a deluge of unprocessed returns from years past.

The problem is that many taxpayers did respond to the notices from the IRS, but the agency was so overwhelmed by the millions of unprocessed returns that it was still working through, that it did not process those responses. While the "normal" processing time for the agency is typically 45 days, Collins estimated that it's actually running close to six months or longer.

The difficulty this season – which officially begins Jan. 24 – stems from a massive pileup of unprocessed returns accrued during the pandemic: Collins estimated the IRS had a backlog of more than 8.6 million unprocessed individual income tax returns and 2.8 million business returns as of mid-December due to the pandemic and other related disruptions. It also had close to 5 million pieces of unanswered mail.

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