IRS Reveals Plan To Address 20 Million Backlogs: Hire 10,000 New Workers

The IRS announced its plan to hire 10,000 new workers to address the massive backlog that will make the current tax season the most challenging in the history of the United States.

As the agency served as the leading distributor of stimulus relief during the pandemic, it encountered budget cuts and staff shortages. The IRS plan is to apply an "all hands on deck" approach to ensure" inventory is back to a healthy level for next filing season."

According to Charles P. Rettig, the IRS commissioner, they plan to have an "all hands on deck" approach to emerge from longstanding staffing shortages that were compounded by the pandemic, saying that they will leave " no stone unturned. "

KSL reported that the agency announced a plan to reduce the tens of millions of filings, which includes accelerating the normally lengthy recruiting process, relying more on automated systems, and hiring additional contract workers to assist with mailroom and paper processes.

More IRS Employees Needed Now More Than Ever

There are 20 million pieces of correspondence that need to be accomplished in the IRS backlogs. That is 15 times more than the regular filing season. However, the number of agency personnel remains the same as it was 50 years ago, despite the increase of the United States' population and the country's tax code has become complex. Also, the IRS now supervises programs in response to the COVID-19 pandemic, which has brought new assignments.

According to officials of the Biden administration, who requested anonymity, the IRS' processing of tax returns will remain a huge challenge if it will not modify its structure set in 1960s standards. The latest plan of the IRS to accomplish the backlog is to hire 10,000 new employees (tax job experience is not necessary). Half of those are targeted to be employed within the next few months, as per New York Times.

The plan also includes having 2,000 contractors and developing chatbots and automated voices that will attend to queries of taxpayers regarding tax credit payments, stimulus, and other concerns, according to CBS News.

IRS jobs fairs will be set up in Austin, Texas; Kansas City, Missouri; and Ogden, Utah, where the agency will use "direct-hire authority" to let new hires start working within 30 to 45 days of their job offer.

Lawmakers Campaign Boosting of IRS Funds

Legislators have already asked IRS Commissioner Rettig to extend the April 18 deadline due to challenges faced by taxpayers during the pandemic. Though, according to the senior official, there is no plan to extend the filing deadline.

The new IRS strategy comes as politicians continue to push for more government funds for the agency.

The Treasury Department would receive $14.3 billion as part of Congress's massive $1.5 trillion omnibus plan, revealed Wednesday. The IRS would receive $12.6 billion. This would be the tax agency's highest funding boost since 2001.

Republicans, on the other hand, have questioned the need for increased financing. The IRS's funds and workforce would be reduced in half, according to Florida Senator Rick Scott's "11 Point Plan to Rescue America," which was announced in February.

However, Scott's proposition has been resoundingly rejected by the White House and Senate Minority Leader Mitch McConnell.