The Treasury Department is warning that tax refunds and other services may be delayed this year because of “enormous challenges” including the coronavirus pandemic and previous budget cuts made at the Internal Revenue Service (IRS).
Treasury officials told reporters during a phone all on Monday that they are predicting a “frustrating season” for taxpayers and tax preparers because of factors that also included federal stimulus actions, according to The Washington Post.
The IRS is also entering filing season with a large backlog of unaddressed returns, officials told reporters. The agency usually has about one million unaddressed returns, but this year’s number could be “several times” that, a Treasury official said, according to the Post. They declined to provide a more exact prediction.
An independent watchdog revealed in June that the IRS ended last year’s filing season with more than 35 million individual and business tax returns that had not been processed, reportedly a fourfold increase from the year before the pandemic.