As 2021 tax filing season begins, Warner raises concerns with IRS delays

Sen. Mark Warner is raising concerns with the IRS after hearing from Virginians who are still waiting on their refunds from the 2020 filing season.

In a letter to Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig, Sen. Warner stressed the importance of getting Virginians their individual tax refunds as soon as possible in order to avoid further processing delays. As of December 31, 2021, there were approximately 6 million unprocessed tax returns from 2020.

“I appreciate the IRS’ efforts to address the significant backlog of unprocessed returns, and recognize the significant challenges the agency has faced in operating during the pandemic while implementing major programs such as the stimulus payments and the Advance Child Tax Credit payments,” wrote Sen. Warner. “However, persistent delays harm taxpayers who are waiting for their returns to process – often those who need their refunds most –  and the agency has an obligation to implement a clear plan that alleviates this backlog while avoiding major delays for the processing of filed returns during the 2021 tax filing season.”

This letter follows up on a February 2021 letter addressing the same issue of persistent processing delays at the IRS.

“Since my last letter, I have continued to hear from constituents that have still not had their 2020 tax returns processed, which has also caused delays in receiving the Advance Child Tax Credit payments, stimulus payments, tax refunds, and other much needed financial aid from the IRS,” Warner noted. “Additionally, businesses that have pending tax returns face delayed processing of their SBA EIDL loan applications. Taxpayers have increasingly expressed to my staff that they are unable to garner any information related to the processing of their tax returns via IRS phone lines or the website.”

In order to further understand the ongoing situation, Sen. Warner asked for answers to the following questions:

1. What formal plans have the IRS and Treasury developed to resolve the significant backlog of individual and business tax returns that remain unprocessed from the 2020 tax filing season?
2. How specifically will that plan allow the IRS to continue to process the backlog in parallel with the processing of returns for the tax year 2021 filing season?
3. Will taxpayers whose 2020 returns remain unprocessed or delayed face any difficulties in filing returns – electronically or in paper form – for the 2021 tax year?  If so, what might these delays or difficulties be, what are your specific plans for addressing them, and how will taxpayers be informed in a timely fashion?
4. When do you anticipate thatthe Taxpayer Advocate Service (TAS) will resume accepting inquiries related to the processing of amended tax returns?  If TAS is unable to accept this casework, will the IRS dedicate other resources to assist with inquiries that TAS is unable to accept?

Throughout the COVID-19 pandemic, Sen. Warner has been a strong advocate for Virginians, working to ensure that they get the funds to which they are entitled. In April 2020, he pressed the Treasury Department to ensure that families who are not normally required to file taxes do not need to wait until the following year to receive the additional $500 payment per dependent child that they were promised. He also successfully pushed the Treasury Department to allow Social Security recipients to automatically receive CARES Act direct cash assistance without needing to file a tax return.

A copy of the letter is available here.