30 Million Paper tax Documents Destroyed by IRS (Latest News)

The first thing you see when you return to work after a long holiday is a mountain of paperwork taking up most of your desk space. It is at this stage that you have a number of options. It’s up to you whether you want to organize the pile and tackle it in order of importance, or simply throw it in the nearest trash can and hope no one notices. But 30M tax docs destroyed by IRS either doing above mentioned things.

The IRS clearly didn’t know that the latter option is generally not a good idea. Approximately 30 million paper-filed information return papers will be destroyed by the Internal Revenue Service in March 2021, according to a report by the Treasury Inspector General for Tax Administration (TIGTA).

What is the explanation for this? Because of the excessive backlog, it was unable to deal with the influx of paperwork.

30M tax docs destroyed by IRS, It Was A Startling Decision To Take

Taxpayers have long been encouraged by the Internal Revenue Service (IRS) to file their forms electronically. It saves the agency, which is underfunded, from having to manually process those documents.

Because it’s what they’re used to, many people continue to file on paper. And as long as the IRS doesn’t take away that choice, it’s something that taxpayers can do.

Despite this, last year the Internal Revenue Service found itself in trouble. During the COVID-19 epidemic in 2020, it decided to close its field offices. With no personnel to process mail-in in early 2021, the IRS was left with an enormous backlog. The agency decided to get rid of 30 million paper tax documents to deal with the backlog.

To be clear, this does not imply that the IRS has destroyed any actual tax documents. But W-2 and 1099 forms, which are used to support tax filings, may have been destroyed.

30M tax docs destroyed by IRS
30M tax docs destroyed by IRS

There is a problem with it, as well. The IRS may have a difficult time validating information on earlier tax returns if it doesn’t have such supporting documentation. There is also a three-year grace period for the IRS to audit a return. People who filed before the IRS chose to purge their records may now get letters asking them to turn over those records for audit.

Taxpayers Can Take Away This

Because of the COVID-19 epidemic, it is possible that the IRS had to resort to severe measures in dealing with backlogs. This only serves to highlight the necessity of electronically submitting taxes.

Because they don’t have to be processed by hand, electronic tax returns are more manageable for the IRS. Even in the best of times, it is faster to file an electronic return than a paper return. You can expect to receive your refund within three weeks of submitting an electronic return. Getting your refund may take up to six weeks if you file on paper.

Your chances of making a mistake on your taxes could be eliminated entirely if you file your taxes electronically. Of course, the IRS does not yet have the resources necessary to conduct large-scale audits. For this reason, it’s still worthwhile to file electronically.

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