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Upset with IRS dragging its heels on stimulus?

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Social Butterfly

Upset with IRS dragging its heels on stimulus?

For those who are upset about delays, etc, in receiving any "stimulus" funds from/via the IRS:

 

Note that the IRS has been under-funded for many years. Many of their computer systems are "legacy" systems that go back more than 30 years and more. Many of you might recall the concern with "Y2K" when it was feared that so many business' computer systems were going to fail because they were written to have a 2-digit date field. The software had been written more than 30 years prior in archaic languages like COBOL. Old COBOL programmers were in high demand back then. Well, this is still the IRS, more than 20 years later.

 

The defunding has been mostly due to the Republican party and accelerated under the current administration ("drain the swamp", "starve the beast"). Those who are upset with the IRS for dragging the roll out of stimulus money may want to remember who is responsible when it comes election day. Just sayin'.

 

 

Underfunding of the IRS is longstanding. See some articles of recent, but not current, date:

 

https://www.cbpp.org/blog/underfunded-irs-continues-to-audit-less

 

https://taxpayeradvocate.irs.gov/2012-Annual-Report/downloads/Most-Serious-Problems-IRS-Significantl...

 

https://www.propublica.org/article/how-the-irs-was-gutted

 

Under the current administration the defunding of the IRS has continued and was accelerated as a mission of the administration. See

 

https://www.pbs.org/newshour/nation/underfunded-irs-struggles-to-send-refunds-answer-calls

 

https://markets.businessinsider.com/news/stocks/irs-tax-enforcement-at-40-year-lows-gop-budget-cuts-...

 

https://www.wbur.org/npr/830159777/irs-budget-cuts-and-staffing-challenges-create-coronavirus-paymen...

 

 

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Honored Social Butterfly

@fffred 

 

Yes, I am sure that the IRS system's efficiency has something to do with the problem but I also think that other things also play a part too.  If they were underfunded within their normal function then this heavier (and different) workload is bound to put a strain on the agency even if they were not underfunded.

 

LIKE:

1.  The shear volume of it all, on top of other normal task that have to be done - processing returns, sending refunds, stopping the fraud that seems to never end. (well, think they have suspended most of their normal functions)

 

2.  Perhaps working with a smaller staff due to the Pandemic

 

3.  The check and cross check between government agencies and trying to send the right amount to just these people - SS Retiree beneficiaries, SSDI beneficiaries, SSI beneficiaries - and the differences in all of them.  Regular taxpayers might have been easier but even with them there are special circumstances that will have to be fixed - now or later - people who died since they don't keep up with that effectively, people who moved, changed banks, got divorced, had children or more children, got married and changed their name - I could go on.

 

4.  The checks and cross checks to determine eligibility and to send the right amount to those eligible and keep down fraud.

Consumer Financial Protection Bureau 04/30/2020 - A guide to COVID-19 economic stimulus relief 

 

If you really want to dive into it - here is 106 pages of their budget justification.

Fiscal Year 2020 - Department of the Treasury Internal Revenue ServiceCongressional Budget Justifica... 

 

A small taste of it - where does the money go - all 11 BILLION of it ! (and that is just normal operation)

Screenshot_2020-05-02 02 -IRS-FY-2020-CJ pdf.png

 

I am not arguing with your premise but I never heard of a Federal Agency that said it had enough money especially one that has to change with special circumstances like the IRS has been required to do at this time.

 

 

It's Always Something . . . . Roseanna Roseannadanna
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