The Treasury Inspector General for Tax Administration released a report indicating about 30 million paper information returns were destroyed by the IRS.
Many of you have received notices from the IRS regarding not receiving Form 943 or other returns, etc. We just found out that the IRS destroyed about 30 million information returns during the height of the pandemic. An information return is typically some type of 1099. A Form 943 is likely not an information return, however, who knows if they destroyed these or not since most of these returns are filed manually and it is paper returns that were destroyed.
Let’s assume that at least 15 minutes of time was used to prepare each of these returns. This means that at least 7.5 million hours of time spent by taxpayers was essentially determined by the IRS to be worthless.
It is likely at least another year or two before the IRS gets back to “normal” and in the meantime we will find out even more cases where the IRS is overwhelmed and took drastic steps to reduce their burden.
On a personal note, I got back from Europe late Sunday night, had to drive to Spokane for meetings on Monday and Tuesday and leaving today to drive to Idaho to speak on Thursday. I will provide a recap of my Europe trip likely that will hit your Inbox Monday morning.
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