Preface

Section 7803(c)(2)(B)(ii) of the Internal Revenue Code requires the National Taxpayer Advocate to submit this report each year and in it, among other things, to identify the ten most serious problems encountered by taxpayers and make administrative and legislative recommendations to mitigate those problems. In each of the ten Most Serious Problem discussions in this report, we are including an IRS narrative response. Our intent is to help readers see both TAS’s perspective and the IRS’s perspective on the source and nature of key challenges and potential solutions.

Actual Preface:

The main focus of this year’s report is the elephant in the room – the continuing customer service challenges taxpayers are experiencing and the negative impact of the filing season backlog. Last year, I reported that the period since the start of the COVID-19 pandemic has been the most challenging that taxpayers and tax professionals have ever faced. The bad news is that taxpayers and tax professionals experienced more misery in 2022. The good news is that since the close of the 2022 filing season, the IRS has made considerable progress in reducing the volume of unprocessed returns and correspondence. We have begun to see light at the end of the tunnel. I am just not sure how much further we need to travel before we see sunlight.

As we enter 2023, the IRS must focus its resources on its core taxpayer service mission – processing tax returns, paying refunds, answering and addressing telephone calls, and providing in-person assistance to taxpayers who seek it. It is crucial that the IRS eliminate the filing season backlog once and for all. With the additional funding the IRS has received and the Direct Hire Authority provided by Congress and the Office of Personnel Management, the IRS is hiring and training more personnel to provide much-needed relief and assistance to taxpayers. But it still will take time until that relief materializes and taxpayers and tax professionals see the benefits. Being transparent and managing expectations will be important to regain public trust.

“In submitting this report, I’m finally able to deliver some good news. The taxpayer experience vastly improved during the 2023 filing season. Despite these improvements, the IRS is still behind in processing amended tax returns and taxpayer correspondence.”

In her Fiscal Year 2024 Objectives Report to Congress, National Taxpayer Advocate Erin M. Collins states, “What a difference a year makes! … I’m finally able to deliver some good news: The taxpayer experience vastly improved during the 2023 filing season.” The IRS caught up in processing paper-filed original Forms 1040 for individuals and various business returns; refunds were generally issued quickly; and taxpayers calling the IRS were much more likely to get through – and with substantially shorter wait times. The IRS reduced its backlog of unprocessed paper returns by 80 percent.

Despite these improvements, the IRS reduced its backlog of unprocessed amended paper returns, taxpayer correspondence, and Accounts Management cases by only six percent. The IRS is still behind in processing amended tax returns and taxpayer correspondence. Although the IRS was much more effective in answering taxpayer calls this year, that could only be accomplished by prioritizing the phones over other IRS operations, which resulted in greater delays in the processing of paper correspondence.

Read the Full Preface ->

In her Fiscal Year 2026 Objectives Report to Congress, National Taxpayer Advocate Erin M. Collins states, “What a difference a year makes! … I’m finally able to deliver some good news: The taxpayer experience vastly improved during the 2023 filing season.” The IRS caught up in processing paper-filed original Forms 1040 for individuals and various business returns; refunds were generally issued quickly; and taxpayers calling the IRS were much more likely to get through – and with substantially shorter wait times. The IRS reduced its backlog of unprocessed paper returns by 80 percent.

Despite these improvements, the IRS reduced its backlog of unprocessed amended paper returns, taxpayer correspondence, and Accounts Management cases by only six percent. The IRS is still behind in processing amended tax returns and taxpayer correspondence. Although the IRS was much more effective in answering taxpayer calls this year, that could only be accomplished by prioritizing the phones over other IRS operations, which resulted in greater delays in the processing of paper correspondence.

Read the Full Preface ->

WASHINGTON — National Taxpayer Advocate Erin M. Collins today released her statutorily mandated mid-year report to Congress. The report says the tax-return filing season generally ran smoothly this year, urges the IRS to prioritize a broad array of technology upgrades, and sets forth key objectives of the Office of the Taxpayer Advocate for the upcoming fiscal year.

In her Fiscal Year 2025 Objectives Report to Congress, National Taxpayer Advocate Erin M. Collins states, “What a difference a year makes! … I’m finally able to deliver some good news: The taxpayer experience vastly improved during the 2023 filing season.” The IRS caught up in processing paper-filed original Forms 1040 for individuals and various business returns; refunds were generally issued quickly; and taxpayers calling the IRS were much more likely to get through – and with substantially shorter wait times. The IRS reduced its backlog of unprocessed paper returns by 80 percent.

Despite these improvements, the IRS reduced its backlog of unprocessed amended paper returns, taxpayer correspondence, and Accounts Management cases by only six percent. The IRS is still behind in processing amended tax returns and taxpayer correspondence. Although the IRS was much more effective in answering taxpayer calls this year, that could only be accomplished by prioritizing the phones over other IRS operations, which resulted in greater delays in the processing of paper correspondence.

Read the Full Preface ->

Preface

Section 7803(c)(2)(B)(ii) of the Internal Revenue Code requires the National Taxpayer Advocate to submit this report each year and in it, among other things, to identify the ten most serious problems encountered by taxpayers and make administrative and legislative recommendations to mitigate those problems. In each of the ten Most Serious Problem discussions in this report, we are including an IRS narrative response. Our intent is to help readers see both TAS’s perspective and the IRS’s perspective on the source and nature of key challenges and potential solutions.

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. Led by the National Taxpayer Advocate, TAS is your voice at the IRS.

The National Taxpayer Advocate’s Annual Report to Congress creates a dialogue at the highest levels of government to address taxpayers’ problems, protect taxpayers’ rights, and ease taxpayers’ burden. Some of the problems discussed in this report were first identified when taxpayers came to TAS for help in resolving problems with the IRS.

The National Taxpayer Advocate delivers this report directly to the tax-writing committees in Congress (the House Committee on Ways and Means and the Senate Committee on Finance), with no prior review by the IRS Commissioner, the Secretary of the Treasury, or the Office of Management and Budget.

2023 Annual Report to Congress (ARC). Each year’s ARC identifies the 10 most serious problems facing taxpayers and recommends how to fix them.

2022 Annual Report to Congress (ARC). Each year’s ARC identifies the 10 most serious problems facing taxpayers and recommends how to fix them.