IRS

The National Taxpayer Advocate said the IRS had a backlog of 4.7 million returns for the 2019 tax year as of mid-May, warning that some taxpayers are in "for a long wait."

The IRS knew that most of these people had died, but its software did not exclude them, Taxpayer Advocate says.

The administration has urged people who are expecting a refund not to wait to file their returns.

The notices may cause "widespread taxpayer confusion," an official warns.

Delays extend beyond people who filed paper returns.

The IRS had difficulty reaching some households.

About half of large business returns audited were closed without change.

The tax agency will pay interest on some 2019 refunds.

The payments, however, were not prohibited under the CARES Act.

Hundreds of thousands of dollars in coronavirus relief payments have been sent to people behind bars across the United States, and now the IRS is asking state officials to help claw back the cash that the federal tax agency says was mistakenly sent.

By extending the deadline, the federal government allowed individuals and businesses to hold onto their cash longer as they deal with the fallout from the outbreak of the virus.

On Friday the agency expanded the eligibility terms of the policy – a part of the CARES Act.

The anonymized information did not help the agency locate any offenders.

The government previously threatened enforcement action against care facilities that seize payments.

The company will end a partnership with the government to offer free tax filing services.

The agency is urging people not to file paper returns, if possible.

The money can be substantial, particularly for low-income individuals who qualify for the maximum one-time payment of $1,200.

The IRS has delivered nearly 160 million economic impact payments worth more than $267 billion.

The tax agency has been combating both a decline in staffing and resources.

“Please do not throw it away,” government pleads.