Overwhelmed IRS Workers Shredded Millions of Tax Documents, Audit Shows

A recent Internal Revenue Service (IRS) audit found that staffers had destroyed 30 million taxpayer documents while they faced a huge backlog.

No taxpayers were negatively affected by the destruction, according to the tax collection agency.

The Treasury Inspector General for Tax Administration (TIGTA) made three recommendations to the IRS to promote more e-filing and improve its processing of paper tax returns.

“This audit was initiated because the IRS’s continued inability to process backlogs of paper-filled tax information documents contributed to management’s decision to destroy an estimated 30 million paper-filed information return documents in March 2021,” said the TIGTA report, which was signed by the deputy inspector general for audit, Michael E. McKenney.

“The IRS uses these documents to conduct post-processing compliance matches to identify taxpayers who do not accurately report their income.”

Following the inspector general’s report, the IRS issued a public statement.

“There were no negative taxpayer consequences as a result of this action. Taxpayers or payers have not been and will not be subject to penalties resulting from this action,” read the statement.

Tax documents included 1099 and W-2 forms, according to the inspector general. The IRS responded to the inspector general with incorrect responses, according to the report.

According to the report, of particular concern is that the Internal Revenue Service does not have a comprehensive and accurate list of business and individual tax forms that cannot be e-filed.

“For example, on September 16, 2020, the IRS provided us with a list identifying 365 tax forms that cannot be e-filed. Our review identified inaccuracies with this list. There were tax forms included on the list that could be e-filed and tax forms absent from the list that could not be e-filed.

“When we discussed the inaccuracies of this list with IRS management, they state they have not updated the list since calendar year 2018 due to other agency priorities and limited funding.”

IRS defends 2020 processing

The IRS defended its returns processing, saying, “We processed 3.2 billion information returns in 2020,” explaining further that tax returns and information returns are not the same.

Information returns are documents submitted by third parties, not taxpayers. “99% of the information returns we used were matched to corresponding tax returns and processed. The remaining 1% of those documents were destroyed due to a software limitation and to make room for new documents relevant to the pending 2021 filing season.”

The report from the inspector general called for the IRS to “develop a Service-wide strategy to prioritize and incorporate all forms for e-filing.” The IRS agreed to follow this recommendation.

The inspector general report also recommended that the Internal Revenue Service “develop processes and procedures to identify and address potentially non-compliant corporate filers.”

The IRS objected to this recommendation saying, “The IRS disagreed with this recommendation. IRS management stated that, for corporate filers to be subject to penalties for failure to e-file returns when required, they must have filed 250 or more returns and have assets of $10 million or more. Not all these criteria are known or available at the time of filing.”

TIGTA also recommended that the IRS “develop processes and procedures to ensure that penalties are consistently assessed against non-compliant business filers with e-filing requirements.”

The Internal Revenue Service also disagreed with this recommendation, as reflected in the report, “IRS management stated it has systemic processes in place for e-filed partnership returns and found them to be working as intended.”

“The IRS has yet to establish processes and procedures to identify and address corporate, employer, and Heavy Highway Vehicle Use Tax filers that do not comply with e-file mandates,” said the TIGTA report.

“Our analysis of tax return filings identified 15,108 filers that paper-filed 22,569 tax year 2018 returns that were required to be e-filed. TIGTA estimates that the processing of these returns cost the IRS $30,196 in comparison to the $3,405 to process the required e-filed tax returns.”

The TIGTA report says e-filing among businesses climbed from 41% to 63% since 2014.

China Takes Aim at the United States Over Taiwan

China is once again flexing its muscles globally and staring down the United States as well. Military officials in the communist nation have declared to their U.S. counterparts that the

Democrats are ‘Killing America’: Rick Perry

Former Energy Secretary and Republican Governor of Texas, Rick Perry, recently said President Biden's bowing to the left-wing Green New Deal and Progressive agendas is evident in his refusal to

Seattle Police Memo: Defunded Force Stopped Investigating New Adult Sexual Assaults This Year

The struggling Seattle Police Department, which is facing an increasingly worsening staffing crisis due to being defunded, will no longer take on any new adult sexual assault cases this year,

Russian Official Threatens U.S. Destruction With Nuclear Missiles

A member of Russia’s Parliament, who is pro-Kremlin, issued a warning that President Vladimir Putin could demolish both the West and East Coasts of the United States with only four

Biden’s Bravado Over Roe v. Wade Is Bark and No Bite

President Joe Biden is trying to muster up as much bravado as he is capable of in response to the Supreme Court’s decision to overturn Roe v. Wade. He announced

China Elected to WHO Executive Board Despite Unanswered Covid Questions

Despite mounting evidence that China is the country where the Covid-19 pandemic originated, the nation was elected to the executive board of the World Health Organization (WHO). The move has

People Leaving Democratic Cities in Droves

The Washington Examiner reported this week about a massive exodus from large cities along with the most liberal coastal states of America. Since the end of the COVID-19 pandemic, people

Finland, Sweden to Seek NATO Entry in ‘New Era’ Amid Russia’s War

Finland's government recently declared a "new era" is at hand as it inches closer to seeking NATO membership. Hours later, Sweden's governing party also backed a plan to join the

More Than 1 Million Voters Leave Democratic Party

There is definitely a movement across the country, many suburban swing voters who were responsible for gains in the Democratic Party in recent years are switching sides and becoming Republicans. 

Analysis: Drought in California Could Almost Halve Hydropower Output, Boosting Electricity Prices

The extended California drought could lead to a decrease in the amount of hydropower being produced. According to the U.S. Energy Information Administration (EIA), California may produce 8% of California’s

ICE Data Reveal Sharp Drop in Deportations Under Biden

Under President Joe Biden, deportations by the U.S. Immigration and Customs Enforcement (ICE) dove sharply last year, to the lowest levels recorded by the agency. According to data released in

SCOTUS Limits Extent of Miranda Rights for Criminals

The Supreme Court loosened the enforcement of Miranda rights for those convicted of crimes this week. They ruled that suspects who are not warned about their right to remain silent

Elon Musk: Why ‘Leaking’ DOJ Won’t Spill Epstein Client List

Elon Musk recently went on Twitter to ask if anyone else was bothered about how quiet the "leaking" Justice Department is concerning Ghislaine Maxwell and Jeffrey Epstein. Musk is the

Putin Blaming America for the World’s Crises

Vladimir Putin, Russia’s president, lashed out at the United States this past weekend in what was called by the Kremlin a major speech. Putin put the blame squarely on America

De Blasio Refuses to Say When He’ll Repay Taxpayers $320K He Spent on Security for Failed Presidential Campaign

Recently-departed, term-limited former New York City Mayor Bill de Blasio used NYPD for security on the presidential campaign trail but won’t commit to repayment of the funds. De Blasio has

Andrew Gillum, the Democratic Candidate for Governor in Florida, Facing 25 Years in Prison

Andrew Gillum, the former Democratic gubernatorial candidate in Florida was just indicted by a federal grand jury. Sharon Lettman-Hicks, the National Black Justice Coalition chief executive officer, was indicted with

Protests Sweep the Country After SCOTUS Overturns Roe v. Wade

The Supreme Court ruled 5 to 4 on Friday to overturn Roe V. Wade, which has provided the constitutional right to abortion for more than 50 years in the United

Fentanyl Awareness Group: Biden Administration, to Track Fentanyl Poisoning, Overdose Deaths Like COVID-19 Deaths

An organization raising awareness about the dangers of fentanyl, Families Against Fentanyl, asks the Biden administration to count fentanyl overdose and poisoning deaths the same way Covid-19 deaths are counted.

Abortion Groups, ACLU Sue Florida Over 15-Week Abortion Ban

A group of abortion providers and the American Civil Liberties Union in Florida have filed a lawsuit to stop the state's new law, which bans abortion after 15 weeks. Florida

NY Court Rules Elephant is Not Human

The leftest agenda took another hit, this time from the state of New York’s top court. The progressives in power are trying to give “personhood” to almost anything except babies

New Transgender Athlete Policies from World Swimming Organization

The world governing body of swimming, Fina, has decided to keep transgender athletes from competing in the elite races of the women’s division. This will be the rule if a

Extremist Abortion Group Declares ‘Open Season’ on Pro-Life Facilities Across the U.S.

The Jane's Revenge extremist pro-abortion group has declared "open season" on pro-life facilities and organizations. The organization has claimed responsibility for vandalism and several fire bombings from Florida to Wisconsin

War Protestors Facing Jail Time in Russia

Those who oppose the war in Russia are on thin ice with the Kremlin. One false move, if you go public in your disagreement with Putin on the war in

Border Patrol Agents Nab Multiple Sex Offenders, Drug Hauls Over Three Days

Border Patrol Chief Raul Ortiz, head of the U.S. Border Patrol, is praising his agents after they captured a slew of deadly drugs, ten sex offenders, and other illegal migrants

Small Businesses are Facing a ‘Summer of Uncertainty’

Small businesses that are dependent on spending tourists and outdoor crowds are unsure what to expect this summer. Many analysts have predicted a lot of pent-up demand after two-plus years