How Many People Have Not Received Their Federal Tax Return?

Understanding the IRS Backlog

The Internal Revenue Service (IRS) is responsible for processing tax returns and issuing refunds to eligible taxpayers. However, due to various factors, including the COVID-19 pandemic and staffing shortages, the IRS has been experiencing significant delays in processing tax returns. As a result, many taxpayers have not yet received their refunds or have experienced issues with their tax returns.

Statistics on Unprocessed Tax Returns

According to the IRS website, as of December 9, 2023, there were approximately 686,000 unprocessed individual tax returns (Form 1040) and 844,000 unprocessed amended individual tax returns (Form 1040-X). Additionally, there were approximately 44,000 unprocessed quarterly employment tax returns (Form 941) and 1,057,000 unprocessed amended quarterly employment tax returns (Form 941-X).

Reasons for the Backlog

The IRS has identified several factors contributing to the backlog, including:

• Increased Tax Complexity: The Tax Cuts and Jobs Act of 2017 introduced significant changes to the tax code, making it more complex for taxpayers to file their returns accurately.
• COVID-19 Pandemic: The pandemic disrupted IRS operations, leading to reduced staffing levels and delays in processing paper returns.
• Staffing Shortages: The IRS has faced ongoing staffing shortages, which have exacerbated the backlog.
• Identity Theft and Fraud: The IRS has been working to combat identity theft and fraudulent tax returns, which has also contributed to delays.

Impact on Taxpayers

The backlog has had a significant impact on taxpayers, including:

• Delayed Refunds: Taxpayers who are due a refund may have to wait longer than usual to receive it.
• Tax Penalties and Interest: Taxpayers who have not filed their returns on time may be subject to penalties and interest charges.
• Stress and Anxiety: The uncertainty surrounding the status of tax returns can cause stress and anxiety for taxpayers.

IRS Actions to Address the Backlog

The IRS is taking steps to address the backlog and improve processing times, including:

• Hiring Additional Staff: The IRS has hired additional staff to help process returns and reduce the backlog.
• Automating Processes: The IRS is working to automate certain processes to improve efficiency and reduce errors.
• Prioritizing Returns: The IRS is prioritizing the processing of returns that are most likely to result in a refund.
• Extending Deadlines: The IRS has extended certain tax deadlines to provide taxpayers with more time to file their returns.

Taxpayer Recommendations

Taxpayers can take the following steps to help reduce the backlog and ensure timely processing of their tax returns:

• File Electronically: Electronic filing is the fastest and most accurate way to file a tax return.
• File on Time: Filing your return on time helps the IRS process it more quickly.
• Avoid Paper Returns: Paper returns are more likely to be delayed due to manual processing.
• Use Direct Deposit: Direct deposit is the fastest way to receive a refund.
• Check the IRS Website: The IRS website provides up-to-date information on the status of tax returns and processing times.

The IRS is experiencing significant delays in processing tax returns due to a combination of factors. Taxpayers who have not yet received their refund or have experienced issues with their tax returns should be aware of the backlog and take steps to minimize the impact on their finances. The IRS is working to address the backlog and improve processing times, but taxpayers should be prepared for potential delays.