Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers

Problem #1: Processing – Ongoing Processing Delays, Burden, and Frustrate TaxpayersAwaiting Refunds and Other Account Actions

In 2023, millions of taxpayers once again experienced significant burden and frustration while
awaiting refunds or other IRS actions necessary to comply with their tax obligations and resolve
tax account issues. Throughout 2023, the IRS’s backlog associated with paper-filed original
and amended returns continued to delay the processing of much-needed taxpayer refunds and
assistance with tax account issues.
However, there was some good news during the 2023 filing season. Taxpayers calling the 1040
toll-free telephone line experienced shorter wait times and were more likely to get through to
speak with a customer service representative (CSR), but answering the phones is only half the
battle.

Because the IRS prioritized telephone service over other IRS operations such as processing
amended returns, working identity theft returns, and responding to taxpayer correspondence,
Accounts Management (AM) CSRs responsible for answering calls were not able to process
amended returns and answer taxpayer correspondence. This created a new backlog by the end of
the 2023 filing season.

As a result, individual and business taxpayers experienced delays. These delays not only have
negative financial implications for taxpayers awaiting refunds but also for the government, as the
IRS must pay interest on overpayments it does not timely refund.

For more information on this problem, please see the Taxpayers Advocacy Web page
(www.TaxpayerAdvocate.irs.gov)
Next week Tuesday Tax Tip will discuss Problem 2
(www.TaxpayerAdvocate.irs.gov) (TTT 101524)