E257 How IRS Processing Delays Are Slowing Down Probate

<p>Probate is already a slow process, and recent IRS processing delays are making probate even slower.</p> <p>Most probate cases <u>must</u> receive IRS tax clearance in order to close the estate. Otherwise, the executor and heirs are at risk for lingering tax problems and getting hit with unexpected tax bills later. Once the heirs understand this, they are fine with taking the time to close the estate properly!</p> <p>The Taxpayer Advocate is a government entity whose job is to oversee and review the performance of the IRS. The Taxpayer Advocate’s recent annual report <a href= "https://www.taxpayeradvocate.irs.gov/reports/2021-annual-report-to-congress/"> https://www.taxpayeradvocate.irs.gov/reports/2021-annual-report-to-congress/</a> breaks down the extent of the IRS delays, why we can’t get any answers, and what to expect this year.</p> <p>We are in the frustrating position where we have to tell clients repeatedly that we are “waiting on the IRS.” Hopefully this blog helps to clarify the situation.</p> <h2>Is the IRS having processing delays?</h2> <p><img class="aligncenter size-medium wp-image-41793" src= "https://anthonyspark.com/wp-content/uploads/2022/03/Is-the-IRS-having-processing-delays-300x169.jpg" alt="Is the IRS having processing delays?" width="300" height= "169" /></p> <p>“Delays” an understatement. The following are quotes from Taxpayer Advocate’s sub-report: ”PROCESSING AND REFUND DELAYS: Excessive Processing and Refund Delays Harm Taxpayers <a href= "https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2022/01/ARC21_MSP_01_Processing-Delays.pdf"> https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2022/01/ARC21_MSP_01_Processing-Delays.pdf</a>”</p> <ol> <li>“At the close of the 2021 filing season, the IRS had <strong>3 million returns awaiting manual processing</strong>”</li> <li>“As the IRS is preparing to begin the 2022 filing season, it is <strong>poised to carry over millions of unprocessed returns</strong> and millions of pieces of taxpayer correspondence, resulting in even longer de