Change comes as agency sends third round of stimulus payments and prepares to implement other parts of the American Rescue Plan
The Internal Revenue Service announced on Wednesday it is postponing the country’s tax-filing deadline until May 17, as the agency grapples with a mounting backlog of 24 million returns awaiting processing since the 2019 tax year.
The workload has put the agency underwater — and under political siege — as lawmakers fret that long-unresolved troubles at the IRS could undercut the Biden administration’s economic recovery efforts. Millions of Americans have not received some stimulus checks under prior coronavirus aid packages, even as the tax agency continued distributing payments Wednesday under the $1.9 trillion stimulus signed into law this month.
The IRS shared the full scope of its backlog with the House Ways and Means Committee and the agency’s own watchdogs in recent days. The numbers, obtained by The Washington Post, dwarf the data the IRS has shared with the public. Explaining the postponement, IRS Commissioner Chuck Rettig said in a statement the government is doing “everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities.” Continue reading.