The IRS still had 23 million items in its backlog to get through heading into this year's tax filing season, as it struggled to overcome hurdles exacerbated by the coronavirus pandemic. Earlier this year, the Taxpayer Advocate wrote in her report the IRS was in a crisis. Treasury and IRS officials warned this could be the most challenging tax filing season for taxpayers and preparers to date.
Rettig appeared before the House Ways and Means committee Thursday for a hearing on the tax filing season. He said the agency will "absolutely" make it through the backlog before the end of 2022.
"If the world stays as it is as of today, we will be what we call healthy by the end of calendar year '22, and enter the '23 filing season with normal inventories — healthy through the eyes of the taxpayer," Rettig said.
The Treasury Department and IRS announced last week a plan to catch up on the pandemic-related backlog this year. The effort includes the hiring of 10,000 IRS employees over the next year, including 5,000 in the next few months. The IRS has also been granted more hiring authority, allowing the agency to get new employees in the door more quickly. Previously, the onboarding process took as many as six to eight months, Rettig said, but with their new abilities, employees could be onboarded in 30 to 35 days.
