The 2020 tax filing season is off with a bang, and to add to all the complications the past year brought, IRS processing delays have caused angst among tax practitioners. Tax pros that filed amended returns, late filings and payments by mail for taxpayers report encountering delays in document processing on the IRS side causing automatic notices of deficiency.
Some believe the delays trace back to the disruption in operations caused by the novel Coronavirus in 2020, despite the IRS saying the backlog had been cleared. The delays are also effecting, payments and setting up installment plans to pay taxes due.
Refund-generating amended returns are also being delayed. When an amended return generates a refund, the refund can be applied to a future tax year, but if the amended return is not processed, then a refund will not be applied and a notice of deficiency is generated.
High call volumes have led to poor customer service, which is another pain point for taxpayers and tax practitioners. Dropped calls, and inability to reach anyone for days, weeks at a time has caused frustration and has led for a call to action to increase funding for the IRS to handle the phone calls and processing.