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TIGTA Report 2021-46-023 — Results of 2020 Filing Season and Effects of COVID-19 on Tax Processing

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CourtTreasury Inspector General for Tax Administration (TIGTA)
Filed2021-03-22

Summary

A final audit report of the Treasury Inspector General for Tax Administration, Report Number 2021-46-023, on the results of the 2020 Filing Season and the effects of COVID-19 on tax processing operations, issued March 22, 2021 to the Commissioner of Internal Revenue. It reports that as of November 13, 2020 the IRS had received about 167.9 million returns, 90.8 percent electronically filed, and issued more than 125 million refunds totaling $315.9 billion. As of December 25, 2020 more than 11.7 million paper returns remained to be processed, and as of November 14, 2020 there were more than 2.9 million pieces of unopened mail. It records the closure of all 358 Taxpayer Assistance Centers and of 81 of 87 toll-free lines, and the extension of the filing due date from April 15, 2020 to July 15, 2020. The report states it was prepared to provide information only and makes no recommendations.

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Results of the 2020 Filing Season and Effects of 
COVID-19 on Tax Processing Operations 
 
 
March 22, 2021 
 
Report Number:  2021-46-023 
 
 
 
 
 
 
 
TIGTACommunications@tigta.treas.gov   |   www.treasury.gov/tigta 
 
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION 

HIGHLIGHTS:  Results of the 2020 Filing Season  
and Effects of COVID-19 on Tax Processing Operations 
Final Audit Report issued on March 22, 2021 
Report Number 2021-46-023 
 
 
Why TIGTA Did This Audit 
This audit was initiated to provide 
selected information related to 
the IRS’s 2020 Filing Season, 
including information related to 
the impact of the Coronavirus 
Disease 2019 (COVID-19).  The 
overall objective of this review 
was to evaluate whether the IRS 
timely and accurately processed 
individual paper and electronically 
filed tax returns during the 
2020 Filing Season. 
Impact on Taxpayers 
The filing season, defined as the 
period from January through 
mid-April, is critical for the IRS.  It 
is during this time that most 
individuals file their income tax 
return and contact the IRS if they 
have questions about specific 
laws or filing procedures. 
The 2020 Filing Season was unlike 
any other.  The IRS had to take 
unprecedented and drastic 
actions to address COVID-19 and 
protect the health and safety of 
its employees and the taxpaying 
public.  These actions included 
closing Taxpayer Assistance 
Centers, Tax Processing Centers, 
and offices nationwide.  In 
addition, on March 20, 2020, the 
Department of the Treasury 
extended the Federal income tax 
filing due date from 
April 15, 2020, to July 15, 2020. 
As of November 13, 2020, the IRS 
received approximately 
167.9 million tax returns (with 
90.8 percent electronically filed) 
and issued more than 125 million 
refunds totaling $315.9 billion. 
 
 
What TIGTA Found 
As of December 25, 2020, the IRS had more than 11.7 million 
paper-filed individual and business returns that still needed to be 
processed.  The backlog of returns, correspondence, and other types 
of work resulting from the pandemic has and will continue to have a 
significant impact on the associated taxpayers.  For example, the 
unprocessed individual returns, as well as the additional returns and 
correspondence in the Error Resolution, Rejects, Unpostables 
functions and the Accounts Management inventory, include 
taxpayers who have yet to receive their Tax Year 2019 tax refunds. 
The IRS’s ability to resolve these backlogs could be affected by the 
need to divert resources to issue additional Economic Impact 
Payments or an unforeseen closure of IRS Tax Processing Centers due 
to the pandemic.  The ability of these taxpayers to contact the IRS to 
receive updated information about the status of their refunds is a 
further challenge as staffing issues continue to hinder the IRS’s ability 
to provide adequate customer service. 
Much of the work performed at the IRS’s Tax Processing Centers 
is not conducive to a telework environment.  This work includes 
the receiving, sorting, and distributing of mail and the processing 
of paper tax returns, which requires manually inputting 
information from the tax return into IRS systems, correcting 
errors, and corresponding with the taxpayer, if needed.  As of 
November 14, 2020, the IRS had more than 2.9 million pieces of 
unopened mail and 4.7 million individual paper tax returns to 
process.  In addition, the IRS had more than 600,000 returns in its 
Error Resolution inventory, nearly 3.7 million cases in its Accounts 
Management inventory, and more than 1.3 million returns in its 
fraud program inventories as of this same period. 
When the IRS closed its offices nationwide, it stopped answering 
81 of its 87 toll-free taxpayer assistance telephone lines and 
closed all 358 Taxpayer Assistance Centers.  In addition, 10,792 of 
the 11,014 Volunteer Income Tax Assistance/Tax Counseling for 
the Elderly partner sites remained closed as of May 24, 2020.  The 
IRS had reopened 80 of its toll-free telephone lines as of 
November 5, 2020, and 263 of its Taxpayer Assistance Centers as 
of November 16, 2020. 
What TIGTA Recommended 
This report was prepared to provide information only.  Therefore, no 
recommendations were made in this report. 
 

U.S. DEPARTMENT OF THE TREASURY 
WASHINGTON, D.C.  20220 
TREASURY INSPECTOR GENERAL 
FOR TAX ADMINISTRATION 
 
 
 
March 22, 2021 
 
 
MEMORANDUM FOR: COMMISSIONER OF INTERNAL REVENUE 
 
FROM: 
Michael E. McKenney 
 
Deputy Inspector General for Audit 
 
SUBJECT: 
Final Audit Report – Results of the 2020 Filing Season and Effects  
of COVID-19 on Tax Processing Operations (Audit # 202040513) 
 
This report presents the results of our review to evaluate whether the Internal Revenue Service 
(IRS) timely and accurately processed individual paper and electronically filed tax returns during 
the 2020 Filing Season.  This review was part of our Fiscal Year 2020 Annual Audit Plan and 
addresses the major management and performance challenge of Implementing Tax Law 
Changes. 
This report was prepared to provide information only.  Therefore, we made no 
recommendations in the report.  However, we provided IRS management officials with an 
advance copy of this report for review and comment prior to issuance.  Management’s complete 
response to the draft report is included as Appendix II. 
Copies of this report are also being sent to the IRS managers affected by the report information.  
If you have any questions, please contact me or Russell P. Martin, Assistant Inspector General for 
Audit (Returns Processing and Account Services). 
 
 

 
 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Table of Contents 
Background .....................................................................................................................................Page 1 
Results of Review .......................................................................................................................Page 5 
Processing Tax Returns ......................................................................................................Page 9 
Detecting and Preventing Tax Refund Fraud .............................................................Page 13 
Providing Customer Service .............................................................................................Page 17 
Appendices 
Appendix I – Detailed Objective, Scope, and Methodology ................................Page 25 
Appendix II – Management’s Response to the Draft Report ...............................Page 27 
Appendix III – Glossary of Terms ....................................................................................Page 30 
Appendix IV – Abbreviations ...........................................................................................Page. 32 
 
 
 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Background 
Due to Coronavirus Disease 2019 (COVID-19), the 2020 Filing Season1 is unlike any other.  The 
Internal Revenue Service (IRS) took unprecedented and drastic actions to protect the health and 
safety of its employees and the taxpaying public.  For example, the IRS closed its Taxpayer 
Assistance Centers (TAC), Tax Processing Centers, and other offices nationwide.  To ensure an 
orderly shutdown of its Tax Processing Centers, the IRS followed existing guidelines that are 
used when operations are ceased due to a lapse in funding.  The major difference with the 
COVID-19 shutdown was that it had less time to prepare due to the urgency of the health crisis. 
Employees were directed to evacuate their work sites, and those who were approved to telework 
started working from home (or an alternate location).  Employees who were not yet approved 
but were able to telework had to complete training, sign agreements, and obtain the necessary 
equipment to enable teleworking.  The remaining employees were put on weather and safety 
leave.  Figure 1 details the specific date each of the Tax Processing Centers were closed as well 
as the date the centers began to resume full operations. 
Figure 1:  Tax Processing Center Closures Due to  
COVID-19 and Reopening Dates in Calendar Year 2020 
Location 
Date Closed 
Date Reopened 
Fresno, California 
March 20 
June 29 
Austin, Texas 
March 25 
June 1 
Kansas City, Missouri 
March 25 
June 15 
Ogden, Utah 
April 6 
June 1 
Source:  IRS management reports and notification for each location’s closure 
and reopening dates.  
The Department of the Treasury extended the Federal income tax filing due date for 
individuals from April 15, 2020, to July 15, 2020.  On March 20, 2020, this tax relief 
postponed various tax filing and payment deadlines due on April 15, 2020.  As a result, affected 
individuals and businesses had until July 15, 2020, to file returns and pay any taxes that were 
originally due during this period.  This included 2019 individual and business returns due on 
April 15.2  Taxpayers were also permitted to defer Federal income tax payments due on 
April 15, 2020, to July 15, 2020, without penalties and interest. 
Legislation was enacted to help businesses and individuals respond to COVID-19.  
Legislation was enacted with numerous tax-related provisions affecting individuals and 
businesses.  This legislation appropriated more than $765 million in additional funding to the 
IRS to administer and oversee the provisions.  The initial legislation included: 
                                                 
1 See Appendix III for a glossary of terms.  The filing season is critical for the IRS as it is during this time that most 
individuals file their income tax return and contact the IRS if they have questions about specific laws or filing 
procedures. 
2 Subsequent guidance further extended the relief to tax payments and filing obligations due on or after April 1, 2020. 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
• 
Families First Cornavirus Response Act,3 signed into law on March 18, 2020, provides 
businesses with tax credits to cover certain costs of providing employees with paid sick 
leave and expanded family and medical leave for reasons related to COVID-19 from 
April 1, 2020, through December 31, 2020.  Eligible employers can claim these credits on 
their Federal employment tax returns, e.g., Form 941, Employer's Quarterly Federal Tax 
Return, or an employer can benefit more quickly by reducing its Federal employment tax 
deposits.  For those employers for which there are insufficient Federal employment taxes 
to cover the amount of the employer’s credit, the employer may request an advance 
payment of the credits from the IRS by submitting Form 7200, Advance Payment of 
Employer Credits Due to COVID-19.  The Treasury Inspector General for Tax 
Administration (TIGTA) has ongoing and planned oversight activities to help ensure that 
eligible taxpayers are receiving timely relief from financial hardship caused by the 
COVID-19 pandemic and that the IRS quickly identifies control weaknesses to prevent 
Federal Government funds from being wasted.4 
• 
Coronavirus Aid, Relief, and Economic Security Act (CARES Act),5 signed into law on 
March 27, 2020, is the largest economic rescue package in U.S. history and included a 
number of provisions that have a significant impact on the IRS and Federal tax 
administration.  This includes issuing recovery rebates, also referred to as economic 
impact payments (EIP), of $1,200 per individual ($2,400 to couples filing a joint return), 
and $500 for each qualifying child.  The payments are to be issued to all U.S. residents 
with income below certain threshold amounts who meet certain other criteria, such as 
having a work-eligible Social Security Number.  TIGTA has ongoing separate reviews to 
assess the IRS’s implementation of the recovery rebate payments for individuals under 
the CARES Act and efforts to ensure that eligible individuals receive an EIP.6  Figure 2 
provides higlights of CARES Act provisions. 
                                                 
3 Pub. L. No. 116-127. 
4 Treasury Inspector General for Tax Administration (TIGTA), Audit No. 202040633, Assessment of Actions Taken to 
Provide Relief to Businesses as a Result of the Coronavirus; TIGTA, Audit No. 202040636, Processing of COVID-19 
Amended Return and Tentative Refund Claims; and TIGTA, Audit No. 202040637, Assessment of Efforts to Address Tax 
Processing Center Backlogs Relating to Business Taxpayers. 
5 Pub. L. No. 116-136, 134 Stat. 281. 
6 TIGTA, Audit No. 202040632, Review of the Implementation of the CARES Act Recovery Rebate for Individuals, and 
TIGTA, Audit No. 202040634, Assessment of Actions to Ensure That All Eligible Individuals Receive an Economic 
Impact Payment.  

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Figure 2:  Highlights of CARES Act Provisions 
 
Source:  Treasury Inspector General for Tax Administration (TIGTA) analysis of the CARES Act. 
Tax law changes affecting the 2020 Filing Season 
In our interim report, we provided a synopsis of key tax law provisions that we were evaluating.7  
These provisions were selected based on our analysis of legislation with tax law changes that 
affect individual taxpayers filing Tax Year 2019 tax returns during the 2020 Filing Season.  
Figure 3 provides a summary of these provisions. 
Figure 3:  Summary of Key Tax Law Provisions Affecting Tax Year 2019  
Tax Law  
Description  
Further Consolidated Appropriations Act, 
20208 – Includes multiple pieces of 
legislation that extend many expired tax 
provisions. 
Section 102 – Treatment of Mortgage Insurance 
Premiums As Qualified Residence Interest.  Qualified 
mortgage insurance premiums may be deductible as an 
itemized deduction, subject to certain limits for amounts 
paid or accrued after December 31, 2017.  
Section 103 – Reduction in Medical Expense Deduction 
Floor.  Taxpayers may deduct medical expenses as an 
itemized deduction to the extent that they exceed 
7.5 percent of Adjusted Gross Income, down from 
10 percent. 
Section 104 – Deduction of Qualified Tuition and Related 
Expenses.  A deduction to Adjusted Gross Income of up to 
$4,000 of qualified tuition and related expenses. 
Section 123 – Nonbusiness Energy Property.  A credit of 
10 percent of the cost of homeowners’ energy-efficient 
property improvements or the cost of residential energy 
property purchases, subject to limits based on the type of 
property and a lifetime limit of $500. 
                                                 
7 TIGTA, Ref. No. 2020-45-024, Interim Results of the 2020 Filing Season (Apr. 2020) 
8 Pub. L. No. 116-94. 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Tax Law  
Description  
Taxpayer First Act9 – Requires the IRS to 
propose an organizational redesign with the 
goals of improving efficiency, modernizing 
systems and business processes, and 
finding ways to better serve taxpayers.   
Section 1406 – Customer Service Information.  Requires 
the IRS to provide information about common tax scams, 
how to report tax scams, and tips on how to protect 
against identity theft and tax scams over the telephone 
while taxpayers are on hold with an IRS call center. 
Section 2303 – Payment of Taxes by Debit and Credit 
Cards.  Enables the IRS to directly accept credit and debit 
card payments for income taxes due provided that the fee 
is paid by the taxpayer.10 
Tax Cuts and Jobs Act of 201711 – Contains 
119 tax provisions administered by the IRS 
that affect both domestic and international 
taxes.   
Section 11051 – Repeal of the deduction for alimony 
payments for any divorce or separation executed after 
December 31, 2018. 
Section 11081 – Elimination of the Shared Responsibility 
Payment for individuals who did not maintain minimum 
essential health care insurance coverage for themselves 
and their dependents. 
Protecting Americans From Tax Hikes Act of 
201512 – Contains a number of provisions 
referred to as program integrity provisions 
intended to reduce fraudulent and improper 
Earned Income Tax Credit, Child Tax Credit, 
Additional Child Tax Credit, and American 
Opportunity Tax Credit payments.   
Section 201 – Modification of filing dates of returns and 
statements related to employee wage information and 
nonemployee compensation to improve compliance.   
Source:  TIGTA's summary of tax law provisions presented in the Interim Results of the 2020 Filing 
Season report. 
However, in response to the COVID-19 pandemic, we changed the scope of our review to 
include testing to assess the effect of the pandemic on the IRS’s continuity of operations.  As 
Figure 1 shows, the Tax Processing Centers were closed between March 20, 2020, and 
June 29, 2020.13  As such, the IRS was unable to perform many of its essential functions.  The IRS 
continues to face operating challenges because of additional measures needed to help ensure 
the personal safety of its workers and to work through significant backlogs in paper return 
filings, payments, correspondence, error resolution, and fraud detection cases.  We will 
reevaluate resuming testing on the provisions detailed in Figure 3 as part of our planning for our 
2021 Filing Season review. 
Prior TIGTA recommendations  
Similar to the previously mentioned key tax provisions, we plan to include a review of the IRS’s 
implementation of corrective actions to address prior TIGTA recommendations in our 2021 Filing 
Season review.  Figure 4 provides a summary of these prior recommendations. 
                                                 
9 Pub. L. No. 116-25, 133 Stat. 981. 
10 Prior to this legislation, taxpayers were able to pay their taxes using a debit/credit card; however, the payment had 
to go through various third-party partners. 
11 Pub. L. No. 115-97, 131 Stat. 2054. 
12 Consolidated Appropriations Act, 2016, Pub. L. No. 114-113, 129 Stat. 2242 (2015). 
13 As shown in Figure 1, the Fresno, California, Tax Processing Center was closed through this entire period and the 
other three had various opening and closing dates within this time period. 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Figure 4:  Summary of IRS Planned Corrective Actions to Prior TIGTA  
Recommendations That TIGTA Will Evaluate During the 2021 Filing Season 
Recommendation 
Corrective Action  
Estimated Tax Penalty Relief – The IRS should 
ensure that any remaining penalty assessments 
qualifying for the 80 percent waiver are 
identified and abated.  This includes those 
penalties that have already been assessed as 
well as those that may be assessed on Tax 
Year 2018 returns filed throughout Processing 
Year 2019. 
The IRS agreed with this recommendation and 
indicated that the affected accounts were being 
reviewed and corrected as needed.  IRS 
management also stated that they plan to perform 
data analysis on all Tax Year 2018 returns filed by 
the extended return due date of October 15, 2019, 
to identify taxpayers who qualified for the waiver 
and did not claim it.  After identification of the 
accounts, management indicated that they will 
perform a systemic abatement of the penalty 
assessments. 
During the 2021 Filing Season, we will follow up 
with the IRS to see if estimated tax penalty relief 
was provided to all eligible taxpayers. 
Business Rule Programming – The IRS should 
correct business rules for tax returns claiming 
the following items: 
• 
An increased standard deduction. 
• 
A blank or zero amount on the Other 
Adjustments Statement. 
• 
Child Tax Credit or Additional Child Tax 
Credit when the child claimed has an 
Adoption Taxpayer Identification 
Number or Individual Taxpayer 
Identification Number. 
• 
Additional Child Tax Credit that exceeds 
the statutory limit of $1,400 per child. 
The IRS agreed with these recommendations and 
submitted programming changes to address the 
issues.  
During the 2021 Filing Season, we plan to quantify 
the benefit resulting from the IRS programming 
changes. 
Source:  TIGTA summary of prior recommendations and related corrective action. 
Results of Review 
This report presents the results of our continued assessment of the 2020 Filing Season.  Our 
2020 Filing Season results are being presented as of November 28, 2020.  If we were able to get 
updated information prior to the issuance of our report, we noted this and added the most 
up-to-date information.  We plan to continue to monitor IRS efforts to address backlogs of work 
in its various Submission Processing functions and will provide further results in our interim 
2021 Filing Season report that we plan to issue in April 2021. 
As of December 25, 2020, the IRS had more than 11.7 million paper-filed individual and business 
returns that still need to be processed.  The backlog of returns, correspondence, and other types 
of work resulting from the pandemic has and will continue to have a significant impact on the 
associated taxpayers.  For example, the unprocessed individual returns, as well as the additional 
returns and correspondence in Error Resolution, Rejects, Unpostables, and Accounts 
Management inventories, include taxpayers who have yet to receive their Tax Year 2019 tax 
refunds.  The ability of these taxpayers to contact the IRS to receive updated information about 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
the status of their refunds is a further challenge as staffing issues continue to hinder the IRS’s 
ability to provide adequate customer service.  The ability to resolve these backlogs could be 
affected by the need to divert resources to issue additional EIPs or an unforeseen closure of IRS 
Tax Processing Centers due to the ongoing pandemic.  Of particular concern is the continued 
challenges in hiring sufficient staff needed to both continue to work backlog inventory and 
process Tax Year 2020 tax returns at the same time.  This could further affect taxpayers awaiting 
refunds and additional Recovery Rebate Credits associated with these Tax Year 2020 returns.  
We plan to continue to monitor IRS efforts to address these ongoing challenges. 
Much of the work performed at the IRS’s Tax Processing Centers is not conducive to a telework 
environment.  This work includes the receiving, sorting, and distributing of mail and the 
processing of paper tax returns, which requires manually inputting information from the tax 
return into IRS systems, correcting errors, and corresponding with the taxpayer, if needed.  In 
closing its Tax Processing Centers, IRS management worked with each of the processing 
functions to complete any in-process inventory by the end of the final work shift on the day of 
closing.  They also ensured that all tax returns received as of the closing of the Centers were 
secured and marked so it would be easy to pick up where they left off when the Tax Processing 
Centers reopened.14  Figure 5 provides an overview of the numerous functional areas within the 
IRS’s Submission Processing function and a brief description of work performed. 
Figure 5:  Overview of the IRS’s Submission Processing Function  
Function 
Description  
Batching 
Tax returns are counted and put into bundles or “batches” by the type of returns 
and by whether there is a remittance.  
Code and Edit 
Paper tax returns are manually reviewed for errors or missing information and 
prepared for computer processing by editing the documents with specialized 
processing codes to perform specific functions.     
Data Conversion 
Paper tax returns are manually input into the IRS’s computer system.   
Deposit 
Processes payments received in the Tax Processing Centers. 
Error Resolution  
Tax returns identified with an error condition are suspended from processing and 
sent to a tax examiner for correction.  
Extracting and 
Sorting 
Mail is removed from envelopes.  Tax returns are categorized by form type and by 
whether there is a remittance.  Correspondence is routed to the appropriate areas.   
Mail Receipt  
The mail operation receives and routes all incoming mail and packages to their 
appropriate destinations. 
Numbering 
Each tax return is hand stamped with a Document Locator Number for tracking 
purposes.   
Rejects 
Tax returns which cannot be processed, usually due to missing or incomplete 
information.  Tax examiners correspond with the taxpayer to clarify an entry on a 
return.  When the taxpayer responds, the tax examiner will resolve the issue and 
the return will continue processing. 
Unpostables 
Transactions that will not post to the taxpayer’s account because it failed validity 
checks.  The unpostable condition must be resolved in order to complete 
processing of the transaction. 
Source:  TIGTA analysis of Submission Processing functions. 
                                                 
14 Paper tax returns are controlled in the IRS’s Batch Block Tracking System.  This system is used to track levels of 
inventory at various stages of the processing of a paper tax return.   

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Closure of Tax Processing Centers resulted in significant backlogs in each of the IRS’s 
Submission Processing functional areas 
Since reopening its Tax Processing Centers, the IRS has been faced with the continued and 
ongoing challenge of working through significant backlogs of work in many of its Submission 
Processing functional areas along with the need to plan for the upcoming 2021 Filing Season.  
Figure 6 provides a comparison of IRS-reported volumes of work to be processed as of 
May 23, 2020, (approximately one week prior to when operations resumed) to estimates of work 
remaining as of November 14, 2020.  Figure 6 also provides estimates of work that remained in 
inventories as of the end of Calendar Year 2019 in order to show that the volumes towards the 
end of Calendar Year 2020 were much higher than normal. 
Figure 6:  Estimates of Work Remaining to Be Processed as of the  
Weeks Ending May 23, 2020; November 14, 2020; and December 28, 2019 
Type of Work Remaining 
Week Ending 
May 23, 2020 
Week Ending 
November 14, 2020 
Prior Year 
Week Ending  
December 28, 2019 
Unopened Mail Volumes  
10,276,573 
2,964,216 
Not Available 
Paper Tax Returns – Individual 
10,070,000 
4,702,000 
183,000 
Error Resolution – Individual 
1,535,229 
601,917 
24,621  
Rejects – Individual 
1,110,332 
1,681,994 
121,397  
Unpostables – Individual 
585,457 
1,195,850 
193,536  
Accounts Management – 
Individual and Business 
(Adjustments) 
1,176,723 
1,471,862 
1,263,397   
Source:  IRS Filing Season Statistics, Mail Receipts, and Accounts Management Inventory Reports for the 
weeks ending December 28, 2019; May 23, 2020; and November 14, 2020. 
The Tax Processing Centers are currently open and not limited in space because IRS 
management worked to update space configurations in order to operate safely.  However, the 
IRS was not always able to operate at full capacity due to social distancing requirements.  These 
requirements include limiting close contact with other employees and maintaining a physical 
distance of at least six feet in an effort to reduce the spread of COVID-19.  In addition, many 
employees remain on weather and safety leave.  For example, as of November 13, 2020, the IRS 
reports 8,471 (77.8 percent) of the 10,888 Submission Processing employees were working 
either in IRS locations or by telework.  The remaining 2,417 (22.2 percent) employees are on 
weather and safety leave because they claimed to be at high risk for severe illness from 
COVID-19.  As of September 17, 2020, the IRS announced that it would require medical 
documentation for those employees claiming high risk beginning October 13, 2020.  Figure 7 
provides the number of employees working at each Tax Processing Center when they closed 
compared to those on weather and safety leave, working on-site, and working remotely as of 
November 13, 2020. 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Figure 7:  Comparison of Tax Processing Center  
Staffing Levels as of November 13, 2020  
 
Location 
Staff Prior 
to Closure 
Staff on Weather  
and Safety Leave 
Staff Working  
On-Site 
Staff 
Teleworking 
Fresno, California 
2,020 
481 
1,345 
227 
Kansas City, Missouri 
2,564 
749 
1,951 
229 
Austin, Texas 
3,011 
736 
1,877 
334 
Ogden, Utah 
2,487 
451 
1,981 
527 
Source:  IRS management reports. 
In an effort to address inventory backlogs, the IRS continues to increase employee telework 
capability, has provided incentive pay for employees returning to work in key functional areas 
like the mail sorting operations (prior to the Tax Processing Centers being fully reopened), and 
has offered overtime to all of its employees.  The IRS is also transshipping mail from one  
Tax Processing Center to another to be worked.  For example, the Kansas City Tax Processing 
Center transshipped 475,000 unopened mail items to the Austin Tax Processing Center to be 
worked.  In addition, the IRS transshipped mail to two lockbox facilities.  These lockbox locations 
would extract the contents, deposit payments when necessary, and return any tax returns to the 
Tax Processing Center for processing. 
Finally, the IRS plans to increase its hiring for the 2021 Filing Season, which will in part help 
reduce backlogs.  IRS management indicated that they have been unable to hire as many new 
employees as they expected.  They plan to hire more than 5,000 employees in Submission 
Processing in Fiscal Year 2021.  However, their short-term goal to hire between 500 and 
600 individuals between October and December 2020 is falling short, with 72 individuals hired 
as of November 19, 2020.  IRS management indicated that some offices experienced hiring 
delays due to problems with the processing of applicants and that applicant pools are low.  We 
will continue to evaluate and report on IRS efforts to address 2020 Filing Season backlogs while 
also preparing for the upcoming 2021 Filing Season.15 
Unopened mail backlog is decreasing; however, inventory and backlogs in other 
Submission Processing functions are increasing  
As of May 23, 2020, the IRS estimated that it had received 13.4 million pieces of mail while the 
Tax Processing Centers were closed and had 10.3 million pieces of mail that were not opened.  
The amount of unopened mail grew to a high of more than 11.9 million as of June 20, 2020.  
However, as of November 14, 2020, the IRS estimates nearly 3 million pieces of mail still need to 
be opened.  The unopened mail includes tax returns, taxpayer correspondence, payments, and 
mail returned as undeliverable.  Once opened, the majority of this mail requires a functional area 
within Submission Processing to take some type of action.  This in turn moves the piece of mail 
from unopened mail inventory to the receiving functions’ inventory, which then increases the 
inventory and backlogs in these functional areas.  For example, if the content of the mail is a tax 
                                                 
15 Planned Interim Filing Season Review for Processing Year 2021. 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
return, then the return will be sent to the IRS’s Batch Block Tracking System to begin the 
processing of the tax return. 
The IRS will continue to receive mail through the end of the calendar year, which will continue to 
increase the inventory of work in other functional areas.  IRS reports dated December 19, 2020, 
show that all of the Tax Processing Centers are opening current mail. 
Processing Tax Returns 
During Calendar Year 2020, the IRS expected to receive approximately 155.1 million individual 
income tax returns (15.3 million filed via paper and 139.8 million electronically filed (e-filed)).  
The IRS began accepting and processing individual tax returns on January 27, 2020, as planned.  
As of November 13, 2020, the IRS received more than 167.8 million individual income tax 
returns.  Figure 8 presents filing season statistics as of November 13, 2020. 
Figure 8:  Filing Season Statistics  
(as of November 13, 2020) 
Cumulative Filing Season Data 
2020 Actual 
Individual Income Tax Returns 
 
Total Returns Received 
167,868,000 
 Paper Returns Received  
15,360,000 
 E-Filed Returns Received16 
152,508,000 
           Practitioner-Prepared  
80,429,000 
           Home Computer  
72,079,000 
              Free File  (within Home Computer)  
12,015,000 
                 EIP Only (within Free File) 
7,800,000 
Percentage of Returns E-Filed  
90.8% 
Refunds17 
 
  Total Number Issued  
125,051,000 
  Total Dollars  
$315.9 billion 
  Average Dollars 
$2,527 
  Total Number of Direct Deposits  
102,276,000 
  Total Direct Deposit Dollars 
$267.1 billion 
Source:  Multiple 2020 Filing Season reports through November 13, 2020.  
Totals shown are rounded. 
The increase in e-filed returns received over the IRS estimate results from return filings via the 
IRS’s Non-Filers:  Enter Payment Info Here tool and other Free File products.  The IRS partnered 
with the Free File Alliance to develop the Non-Filers:  Enter Payment Info Here tool.  This tool 
                                                 
16 Includes nearly 8.4 million returns for individuals who do not have a filing obligation but filed to receive their EIP.  
Of the nearly 8.4 million returns, more than 7.8 million (92.9 percent) used Free File for this purpose. 
17 These figures include the interest-only refunds for approximately 13.8 million taxpayers that received their refund 
earlier in the year without interest.  The amount of interest paid was nearly $249 million. 

 
Page  10 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
assists taxpayers who are eligible to receive an EIP but do not have a Federal tax return filing 
requirement to e-file a short tax return that contains the information the IRS needs to issue their 
EIP for free.  As of November 13, 2020, the IRS received more than 7.8 million e-filed returns via 
this tool or other Free File products for this purpose. 
Millions of individual income tax returns still need to be processed  
When the IRS closed its Tax Processing Centers, taxpayers still had the ability to e-file their tax 
returns.  E-filed returns with no identified error(s) or review condition(s) continued to be 
processed to completion, with any associated refund being issued.  However, unlike e-filed 
returns, no actions could be taken to process paper-filed tax returns while Tax Processing 
Centers were closed.  IRS reports show that 2.7 million paper-filed tax returns had been 
processed before paper-filed tax return processing was halted.  IRS management estimated that 
there were approximately 3.2 million paper-filed individual tax returns on-site and unprocessed 
when the Tax Processing Centers closed. 
Once Tax Processing Center operations resumed, the number of unprocessed paper-filed 
individual tax returns had grown to more than 10 million.  As of November 13, 2020, the IRS 
estimated 4.7 million tax returns remained to be processed.  IRS reports show on average 
343,875 paper-filed tax returns are processed weekly.  As such, we estimate that the processing 
of these tax returns may not be completed until early March 2021.  In addition, the IRS has 
estimated there are an additional 800,000 individual tax returns in the backlog of unopened 
mail, which could result in an additional three weeks being needed to process all tax returns, 
pushing the completion to late March 2021.18  The estimated time frames are also dependent on 
the IRS’s ability to work through inventories of its various functions, e.g., Error Resolution, 
Rejects, and Unpostables, as shown later in the report. 
In an effort to address the backlog of paper tax returns still needing to be processed, the IRS is 
using staff from other functions to assist in opening mail and is planning to continue to rotate 
Tax Processing Center employees to those areas where assistance is needed.  The IRS has also 
transshipped unopened mail from Kansas City, Missouri, to the Austin, Texas, Tax Processing 
Center as well as tax returns from the Ogden, Utah, location to the Fresno, California, Tax 
Processing Center.  It is critical for the IRS to process these Tax Year 2019 returns in order to be 
prepared to begin processing Tax Year 2020 returns in the 2021 Filing Season.  While 
procedures do exist to allow a Tax Year 2019 return to be processed during the 2021 Filing 
Season, the time to prepare a tax return for input to the IRS’s computer system is lengthened.  If 
the IRS processes the remaining Tax Year 2019 returns left in its inventory prior to processing 
Tax Year 2020 returns received during the 2021 Filing Season, taxpayers’ refunds could be 
delayed. 
We asked IRS management on November 19, 2020, what risks they envisioned for the 
2021 Filing Season, and they indicated they have not currently evaluated any specific risks to 
taxpayers.  They are not furloughing any employees this year and plan to keep working on the 
outstanding inventories through the beginning of the 2021 Filing Season.  The IRS also noted 
                                                 
18 Our estimate to complete processing is our best attempt to put a time frame on when the processing of Tax 
Year 2019 tax returns might be completed.  However, the time frame for processing a tax return can be affected by 
many factors.  For example, a return that does not contain any errors can be processed relatively quickly, but if a 
return contains errors and must be reviewed by a tax examiner, this time frame is lengthened.   

 
Page  11 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
that it is required to hold taxpayer refunds claiming certain tax credits until February 15, which 
provides an additional opportunity to get the backlog resolved prior to the new tax year 
needing to be worked. 
Interest payments were issued to taxpayers whose Tax Year 2019 returns were processed 
subsequent to April 15 
As previously noted, the Department of the Treasury extended the Federal income tax filing due 
date from April 15, 2020, to July 15, 2020, after the President issued an emergency declaration 
under the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 198819 in response 
to the ongoing COVID-19 pandemic.  The IRS is required by law to pay interest on tax refunds 
due to individual taxpayers affected by the Federally declared disaster who filed their tax returns 
for Tax Year 2019 on or before the postponed due date of July 15, 2020.  The overpayment 
interest will generally accrue from the original April 15 due date, rather than the postponed due 
date of July 15, to the date of the refund. 
To compute and issue these additional interest payments, the IRS implemented a computer 
program in late July 2020.  This program analyzed tax returns that were timely filed, i.e., on or 
before the extended due date of July 15, 2020, and that had their refund issued after the normal 
tax return due date of April 15, 2020.  Interest payments were then issued in the same manner 
as the taxpayer’s original refund, i.e., paper check or direct deposit.  We analyzed tax returns 
processed with refunds after April 15, 2020, that were received by July 15, 2020, and determined 
that the IRS issued this interest where applicable as long as the interest due was greater than 
$1.00. 
Tax returns that had been received by July 15, 2020, and were processed after this computer 
program was run in late July received the amount of interest due at the same time as their main 
tax refund.  We also confirmed these interest payments were on the tax accounts when 
applicable.  In total, our analysis identified approximately 22.6 million taxpayers received more 
than $589 million in interest as of October 22, 2020. 
Error Resolution, Rejects, and Unpostables case inventories remain high 
As previously noted, when Tax Processing Centers were closed, taxpayers still had the ability to 
e-file their tax returns.  However, similar to paper tax returns, e-filed tax returns identified with 
errors are sent to the IRS’s Error Resolution function for tax examiner review.  When a tax return 
is identified with an error condition, the IRS suspends the tax return from processing and sends 
the tax return to a tax examiner to address the error.  The IRS’s Error Resolution function is 
responsible for correcting these error conditions.  Once corrected, the tax return will continue to 
be processed.  In addition, processing of the tax returns can also be delayed if the return is in 
the Rejects or Unpostables inventories.  For example: 
• 
Returns sent to Rejects inventory include returns which cannot be processed, usually due 
to missing or incomplete information.  For example, when additional clarification is 
needed for an entry on the tax return, the Rejects unit tax examiners correspond with the 
taxpayer for additional information.  When the taxpayer responds, the tax examiner will 
resolve the issue and the return will continue processing. 
                                                 
19 Pub. L. No. 100-707. 

 
Page  12 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
• 
Transactions sent to Unpostables inventory include returns that will not post to the 
taxpayer’s account because they failed validity checks.  For example, if the name and 
Taxpayer Identification Number on a tax return do not match information in IRS records 
for that taxpayer, the tax return transaction could go unpostable.  The unpostable 
condition must be resolved to complete processing of the tax return. 
Although the majority of the work in the previously mentioned inventories was unable to be 
performed while the Tax Processing Centers were closed, the IRS was able to work some e-filed 
cases identified as needing correction by an Error Resolution function employee.  These cases 
could be resolved based on information provided with the return submission and did not 
require corresponding with the taxpayer.  However, the IRS was unable to work the Rejects and 
Unpostables inventories during that time, causing current inventories to be much higher than 
normal. 
Further impeding the IRS’s ability to work returns in these inventories, correspondence could not 
be printed and sent for those cases that required corresponding with a taxpayer.  In response to 
the pandemic, as of April 8, 2020, the IRS closed both of its sites that print and mail these 
notices.  These operations were resumed on June 15, 2020, at a limited capacity.  At the time Tax 
Processing Centers were closed and as of November 13, 2020, the IRS had the following number 
of tax returns in its inventory: 
• 
Error Resolution – 761,303 individual tax returns in its Error Resolution inventory to be 
worked as of April 3, 2020.  As of November 13, 2020, the IRS reported 601,917 cases in 
the Error Resolution inventory.  In addition, we estimated an additional 1.7 million 
potential receipts through the end of the calendar year by averaging the receipts of the 
previous two weeks shown on the IRS report and taking this figure times the remaining 
number of weeks in the year.  As such, we estimated the IRS would be unable to resolve 
these cases until approximately January 22, 2021.  As of January 29, 2021, the IRS reports 
75,007 cases are still in the Error Resolution inventory. 
• 
Rejects – 941,559 individual tax returns in its Rejects inventory to be worked as of 
April 3, 2020.  The IRS reported that, as of November 13, 2020, a total of 1,681,994 cases 
remained to be worked in Rejects inventory.  Using the same method as previously 
described of estimating additional receipts in the Rejects inventory, we estimate the IRS 
will be unable to resolve these cases until approximately September 3, 2021.  The IRS 
was not previously focused on working this inventory but has recently moved resources 
to work down this inventory.  As of January 29, 2021, the IRS reports 1,584,722 cases are 
still in the Rejects inventory. 
• 
Unpostables – 334,011 individual tax returns in its Unpostables inventory to be worked 
as of April 3, 2020.  The IRS reported that, as of November 13, 2020, a total of 
1,195,850 cases remained to be worked in Unpostables inventory.  Using the same 
method as previously described of estimating additional receipts in Unpostables 
inventory, we estimated the IRS would be unable to resolve these cases until 
approximately March 5, 2021.  As of January 29, 2021, the IRS reports 1,467,915 cases are 
still in the Unpostables inventory. 
As previously noted, due to the length of time to work through these inventories, the IRS will be 
unable to complete processing of some Tax Year 2019 tax returns before taxpayers file their Tax 
Year 2020 tax return.  This could potentially prevent taxpayers from having the necessary 

 
Page  13 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
information to file their Tax Year 2020 tax return and could cause delays in refunds.  As 
mentioned earlier, we asked IRS management on November 19, 2020, what risks these backlogs 
might cause for the 2021 Filing Season, and they indicated they have not currently evaluated 
any specific risks to taxpayers.  We will continue to monitor and report the potential effect on 
taxpayers.  The ability to resolve these backlogs could be affected by the need to divert 
resources to issue additional EIPs or an unforeseen closure of IRS Tax Processing Centers due to 
the ongoing pandemic. 
Detecting and Preventing Tax Refund Fraud 
Similar to other functional areas involved with the processing of tax returns, significant backlogs 
of potentially fraudulent returns identified as well as returns identified with questionable 
refundable credit claims accumulated during the pandemic.  The IRS’s Return Integrity and 
Compliance Services function is responsible for addressing returns identified as involving 
potential identity theft.  Once identified, these returns are held during processing until the IRS 
can verify the taxpayer’s identity.  If the IRS cannot confirm the individual’s identity, the IRS 
removes the tax return from processing to prevent the issuance of a fraudulent refund.  For 
other types of potentially fraudulent tax returns identified, i.e., non–identity theft, the IRS 
suspends these tax returns to provide additional time to receive third-party income documents, 
e.g., Form W-2, Wage and Tax Statement.  The suspended tax returns are held until either the 
IRS receives third-party documents and the income and withholding is verified or the tax returns 
are sent to the Return Integrity and Compliance Services function for screening and verification. 
The Return Integrity and Compliance Services function also conducts examinations of tax returns 
with questionable refundable credit claims.  For those returns selected for examination, the IRS 
corresponds with taxpayers to request additional documentation to support their refundable 
credit claim.  When the majority of IRS operations were suspended, Return Integrity and 
Compliance Services management noted that, although their employees could work cases 
remotely, external factors prevented this work from being performed.  These factors included: 
• 
Some employees were unable to telework – As of September 30, 2020, Return 
Integrity and Compliance Services still had 74 (3.7 percent) of their 1,986 employees on 
weather and safety leave.  There were 23 of the 74 employees who did not have access 
to high-speed Internet, and the remaining 51 employees are responsible for doing work 
that is not able to be taken out of the office environment.  As of October 31, 2020, 
Return Integrity and Compliance Services still had approximately 4 percent of its 
employees on weather and safety leave. 
• 
The inability to print and mail required correspondence due to Correspondence 
Production Services site closures – IRS management noted that, even if the required 
correspondence could be printed and mailed, responses from taxpayers are sent to the 
IRS and require staff to be physically present in the office to receive, update, and 
distribute the taxpayer responses to employees assigned to work the cases. 
• 
Refundable credit claims are prerefund examinations – No compliance actions could 
be taken until July 15, 2020.  On March 25, 2020, the IRS unveiled a new People First 
Initiative, which included a sweeping series of steps to assist taxpayers by providing relief 

 
Page  14 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
on a variety of issues ranging from adjusting or suspending key IRS compliance 
programs to easing payment guidelines.  This relief was through July 15, 2020. 
Figure 9 provides the Return Integrity and Compliance Services inventory to be worked at the 
time Tax Processing Centers closed as well as the inventory remaining as of the week ending 
November 14, 2020. 
Figure 9:  Return Integrity and Compliance Services  
Function Inventory as of the Week Ending November 14, 2020 
Inventory Return Type  
Week Ending 
April 11, 2020 
Week Ending 
November 14, 2020 
Examination – The IRS selected these returns for 
examination.  These returns primarily involve a 
questionable refundable tax credit. 
247,319 
254,563 
Identity Theft – Taxpayers have been asked to verify their 
identity.  
625,267 
1,029,428 
Non–identity Theft – The IRS has selected these returns 
for treatment. 
331,736 
49,021 
Source:  IRS management reports. 
In our discussions with management related to the case inventories in Figure 9, they provided 
perspective on whether these reflect normal levels or if they include backlogs associated with 
the pandemic.  For example: 
• 
Examination inventory – IRS management stated on October 28, 2020, that this inventory 
does not indicate a backlog due to the pandemic but is normal working inventory level.  
The IRS monitors responses made on these open cases, and there were some responses 
that the IRS could not work during the pandemic.  Therefore, in order to control its 
inventory levels, the Examination group did not open any new cases between March and 
August 2020, which allowed it to concentrate on working responses.  As of 
November 30, 2020, the IRS was working approximately 36,000 responses, which was 
down from the more than 70,000 responses in July 2020 after it reopened. 
• 
Identity theft inventory – IRS management indicated that during the shutdown this 
inventory increased considerably because the IRS was unable to issue notices.  The only 
backlogs that they have experienced is from paper correspondence that accumulated 
from taxpayers who sent in written responses before the pandemic or opted to send in a 
response during the shutdown even though other response channels were provided.  IRS 
management does not expect responses from most of these potential identity theft 
cases and will classify these cases as identity theft at some point in the future.  They are 
intentionally extending the period of time to archive these cases as confirmed identity 
theft in order to allow more time for the real taxpayer to respond. 
• 
Non–identity theft – The IRS selects tax returns all year for treatment based on its various 
filters but can control the number of cases it starts based on resources available to work 
cases identified.  This year, the IRS identified more returns than it had the resources to 
treat.  As a result, the IRS released approximately 77,000 returns with $268 million in 
refunds in October and November 2020 in order to have the resources to prioritize more 
egregious returns, such as identity theft and prisoner returns. 

 
Page  15 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Fraudulent tax returns and refunds identified and stopped 
As of September 26, 2020, the IRS reported that it identified 451,674 tax returns with more than 
$2.8 billion claimed in fraudulent refunds and prevented the issuance of more than $2.7 billion 
on 448,301 (99.3 percent) of those refund returns.  Although this represents a slight decrease of 
3.8 percent over the number of tax returns identified during the same period during the 
2019 Filing Season, the IRS identified as fraudulent a larger percentage of tax returns this year 
than last year.  For example, 99.3 percent of the tax returns identified were found to be 
fraudulent compared to only 97.2 percent last year.  In addition, the IRS stopped more than 
$2.7 billion in fraudulent refunds during both Processing Years 2019 and 2020.  Figure 10 shows 
the number of fraudulent tax returns the IRS identified for Processing Years 2019 and 2020 as 
well as the refund amounts that were stopped. 
Figure 10:  Fraudulent Tax Returns and Refunds Identified and  
Stopped in Processing Years 2019 and 2020 (as of September 26, 2020) 
 
Processing 
Year 
Number of 
Fraudulent 
Refund 
Returns 
Identified 
Number of 
Fraudulent 
Refund Returns 
Stopped 
 
Amount of Fraudulent 
Refunds Identified 
 
Amount of Fraudulent 
Refunds Stopped 
2019 
469,540 
456,435 
$2,842,415,045 
$2,774,903,163 
2020 
451,674 
448,301 
$2,816,994,513 
$2,775,342,055 
Source:  IRS fraudulent tax return statistics for Processing Year 2019 (as of September 28, 2019) and 
Processing Year 2020 (as of September 26, 2020). 
Prevention of fraudulent tax returns from entering the tax processing system 
The IRS continues to increase the number of fraudulent tax returns detected and stopped from 
entering the tax processing system, i.e., rejecting e-filed tax returns and preventing paper tax 
returns from posting.  For example, as of September 24, 2020, the IRS had locked the tax 
accounts of 43.8 million deceased individuals.  This compares to 41.2 million accounts locked as 
of September 26, 2019.  When tax accounts are locked, e-filed tax returns are rejected and paper 
tax returns are prevented from posting to the Master File.  According to the IRS, as of 
September 30, 2020, it had rejected 110,075 fraudulent e-filed tax returns, and it had stopped 
3,160 paper tax returns from posting to the Master File. 
Detection of tax returns involving identity theft and fraud 
For the 2020 Filing Season, the IRS is using 196 filters to identify potential identity theft tax 
returns and prevent the issuance of fraudulent tax refunds.  In comparison, for the 2019 Filing 
Season, the IRS used 193 filters.  These filters incorporate criteria based on characteristics of 
confirmed identity theft tax returns, including amounts claimed for income and withholding, 
filing requirements, prisoner status, taxpayer age, and filing history.  Tax returns identified by 
these filters are held during processing until the IRS can verify the taxpayer’s identity.  If the 
taxpayer’s identity cannot be confirmed, the IRS removes the tax return from processing in an 
effort to prevent the issuance of a fraudulent refund. 
As of September 30, 2020, the IRS reported that it identified 6.2 million tax returns with refunds 
totaling approximately $27.6 billion for additional review as a result of identity theft and fraud 

 
Page  16 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
filters.  As of September 30, 2020, the IRS had confirmed 44,411 fraudulent tax returns and 
prevented the issuance of $508.8 million in fraudulent tax refunds.  This represents a significant 
decrease of 73 percent when compared to the 163,803 returns confirmed as identity theft the 
prior year.  IRS management stated that the decrease is partially attributable to the delay in 
issuing notices to taxpayers and those taxpayers have not yet taken action to respond to the 
notices.  In addition, the IRS extended the response time to allow “good” taxpayers to respond 
and authenticate their identity.  Figure 11 shows the number of identity theft tax returns the IRS 
identified and confirmed as fraudulent in Processing Years 2019 and 2020. 
Figure 11:  Identity Theft Tax Returns Confirmed  
Fraudulent in Processing Years 2019 and 2020  
(as of September 30, 2020) 
Processing Year 
Number of Identity Theft Returns 
2019 
163,803 
2020 
44,411 
Source:  IRS fraudulent tax return statistics for Processing 
Years 2019 and 2020 (as of September 30, 2020). 
Screening of prisoner tax returns 
To combat refund fraud associated with tax returns filed using prisoner Social Security Numbers, 
the IRS compiles a list of prisoners (the Prisoner File) received from the Federal Bureau of Prisons 
and State Departments of Corrections as well as Prisoner Update Processing System data from 
the Social Security Administration.  These data files are used to identify for additional screening 
tax returns filed using a prisoner Social Security Number.  As of September 26, 2020, the IRS 
reported that it identified for screening 45,147 potentially fraudulent tax returns filed by 
prisoners.20  This represents a 2.1 percent decrease over the number of tax returns identified 
during the same period during the 2019 Filing Season.  Figure 12 shows the number of prisoner 
tax returns identified for screening in Processing Years 2019 and 2020. 
Figure 12:  Prisoner Tax Returns Identified for  
Screening in Processing Years 2019 and 2020  
(as of September 26, 2020) 
Processing Year 
Number of Prisoner Tax Returns 
Identified for Screening 
2019 
46,104 
2020 
45,147 
Source:  IRS fraudulent tax return statistics for Processing 
Year 2019 (as of September 28, 2019) and Processing 
Year 2020 (as of September 26, 2020). 
                                                 
20 Tax returns filed using a prisoner’s name and Social Security Number. 

 
Page  17 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
We have a separate ongoing review to evaluate the effectiveness of IRS processes to identify 
and reduce prisoner fraud.21 
Providing Customer Service 
The IRS provides assistance to millions of taxpayers via its website (IRS.gov), telephone, and 
social media platforms as well as face-to-face assistance at its TACs, Volunteer Income Tax 
Assistance sites, and Tax Counseling for the Elderly sites.  As previously mentioned, between 
March 20, 2020, and April 6, 2020, the IRS closed its offices nationwide, resulting in most 
customer service assistance options for taxpayers being unavailable.  These actions directly 
contributed to the IRS’s ability to provide quality customer service.  For example: 
• 
Toll-Free Lines – There were 87 toll-free telephone lines in operation prior to 
March 19, 2020, that taxpayers used to contact the IRS.  As of March 31, 2020, the IRS 
reports that it stopped answering 81 (93 percent)22 of the 87 toll-free lines that provide 
taxpayers assistance with tax law questions, requesting transcripts of tax accounts, and 
setting up appointments for face-to-face assistance.  The IRS closed these lines because 
the employees answering these telephone lines were not telework-ready when the IRS 
locations were closed. 
• 
TACs – TACs provide taxpayers face-to-face assistance with an IRS employee, by 
appointment.  All 358 TACs were closed nationwide effective March 23, 2020.  According 
to IRS management, TAC employees are not eligible for telework and do not have 
laptops to allow for remote work.  As of March 23, 2020, 79,264 taxpayer appointments 
were cancelled. 
• 
Free Tax Return Preparation – IRS Volunteer Income Tax Assistance and Tax 
Counseling for the Elderly programs offer free tax help for taxpayers who qualify.  While 
the IRS manages the programs, the sites are managed by IRS partners and staffed by 
their volunteers.  The majority of the volunteer sites were closed throughout the 
pandemic.  For example, as of the week ending May 24, 2020, 10,792 (98 percent) of the 
11,014 Volunteer Income Tax Assistance/Tax Counseling for the Elderly sites remained 
closed. 
• 
Printing and Mailing Correspondence to Taxpayers – The IRS prints and mails the 
majority of its correspondence from two centralized sites located in Detroit, Michigan, 
and Ogden, Utah.  These operations are referred to as Correspondence Production 
Services.  In response to the pandemic, the IRS closed both of these sites as of 
April 8, 2020.  As of May 14, 2020, the IRS reported that there were more than 
22.1 million items in the Correspondence Production Services queue to be printed and 
mailed.  The closure of this operation also had a direct impact on the IRS’s ability to  
work cases in its Error Resolution, Return Integrity and Compliance Services, and 
Accounts Management functions that required the issuance of a notice or letter to a 
taxpayer.  As of June 15, 2020, both sites were reopened in a limited capacity.  Once 
                                                 
21 TIGTA, Audit No. 202040005, Prisoner Fraud Follow-Up.   
22 The remaining six toll-free lines that remained open include lines such as the tax fraud referral line that does not 
offer live assistance.  In addition to the existing 87 toll-free lines, the IRS opened three new lines related to EIP 
questions and COVID-19 tax issues.  

 
Page  18 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
reopened, IRS management coordinated with all affected IRS functional areas to 
prioritize which notices should be mailed first when resuming operations and which 
notices are no longer necessary and could be purged (for example, monthly payment 
reminders on installment agreements for months that have already passed).  The IRS 
cleared all of the backlogged correspondence by the week ending July 18, 2020. 
We have a separate review assessing the impact of the COVID-19 pandemic on the IRS’s 
customer service operations as well as its efforts to resume these operations.  We will also 
provide an evaluation of the IRS’s comprehensive customer service strategy developed as 
required by the Taxpayer First Act. 
Online assistance 
The IRS provides easy-to-use self-assistance options that enable taxpayers to access the 
information they need 24 hours a day, seven days a week.  The most notable self-assistance 
option is the IRS’s public Internet site, IRS.gov.  The IRS reported more than 1.5 billion visits  
to IRS.gov this filing season as of September 25, 2020.  In comparison, the IRS reported 
577.5 million visits to IRS.gov for the 2019 Filing Season as of September 27, 2019.  The IRS 
website provides a number of online tools to assist taxpayers.  Figure 13 provides examples of 
these online tools along with the number of times the tool was used as of September 30, 2020. 
Figure 13:  Examples of Online Tool Uses for the 2020 Filing Season  
(as of September 30, 2020) 
Tool 
Description  
Number of Uses 
Interactive Tax 
Assistant 
A tax law resource that takes taxpayers through a series of questions 
and provides them with responses to basic tax law questions. 
2.6 million 
Tax 
Withholding 
Estimator 
Designed to help workers target the refund they want by having the 
right amount of income tax taken out of their pay.  It incorporates the 
changes from the redesigned Form W-4, Employee’s Withholding 
Certificate, which employees can fill out and provide to their 
employers. 
4.8 million 
Where’s My 
Refund? 
Allows taxpayers to check the status of their refunds using the most 
up-to-date information available to the IRS. 
500.1 million 
Source:  IRS management information reports for the Interactive Tax Assistant as of September 30, 2020, 
Tax Withholding Estimator completions as of September 30, 2020, and Where’s My Refund? tool as of 
September 25, 2020. 
The IRS established a dedicated web page on IRS.gov (IRS.gov/coronavirus/economic-
impact-payments) to assist taxpayers in obtaining information related to the IRS’s 
issuance of the EIPs.  This web page provides updated information related to the issuance of 
the EIP, including a continually evolving list of Frequently Asked Questions.  In addition, the IRS 
developed an online tool “Get My Payment” that provides taxpayers with the ability to check the 
status of their EIP and submit bank information for taxpayer accounts that are missing that 
information.  As previously mentioned, the IRS also developed the “Non-Filers:  Enter Payment 
Info Here” tool to assist taxpayers who are eligible to receive an EIP but do not have a Federal 
tax return filing requirement.  As of September 30, 2020, the IRS reported more than 143 million 
visits to the Coronavirus web page, approximately 557 million uses of the “Get My Payment” 

 
Page  19 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
tool, and more than 6.8 million uses of the Non-Filer tool.  The IRS has various other web pages 
related to the EIP, all of which have visits ranging from 136 million to 725 million visits. 
Social media platforms 
The IRS also offers taxpayers the ability to obtain information from the IRS using their mobile 
devices.  For example, the IRS offers IRS2Go and uses various forms of social media, including 
YouTube, Twitter, Facebook, and Instagram.  Figure 14 shows the total number of followers for 
each of these platforms along with the cumulative number of YouTube videos viewed as of 
September 30, 2020. 
Figure 14:  Number of Followers  
on Social Media Platforms  
(as of September 30, 2020) 
Social Media Platforms 
Number of Followers 
IRS2Go  
14,646,395 
YouTube (Views) 
4,536,789 
Facebook  
441,644 
Twitter 
336,552 
Instagram 
58,172 
Source:  IRS management information reports. 
Toll-free telephone level of assistance 
As of September 30, 2020, 78 (96.3 percent) of the 81 previously closed lines had reopened.  
Two of the three lines that remain closed were reopened by November 5, 2020.  IRS 
management has no plans to reopen the remaining line as this line was inadvertently kept open 
for the Making Work Pay Credit, which was no longer available after Tax Year 2010. 
As of September 25, 2020, taxpayers made approximately 126.5 million total attempts and 
71.3 million net attempts23 to contact the IRS by calling the various customer service toll-free 
telephone assistance lines.  The IRS reports that nearly 30.8 million calls were answered with 
automation, and telephone assistors answered nearly 14.1 million calls and provided a 
51.1 percent Level of Service with an 18-minute Average Speed of Answer.  Figure 15 shows a 
comparison for Calendar Years 2019 and 2020. 
                                                 
23 Total call attempts represent calls received during open and after hours.  Total net call attempts represent calls 
received during open hours.  

 
Page  20 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Figure 15:  Toll-Free Services Statistics  
for Calendar Years 2019 and 2020  
(as of September 25, 2020) 
Statistic 
Filing Season 
2019 
2020 
Assistor Calls Answered 
17,369,000 
14,092,000 
Level of Service 
64.1% 
51.1% 
Average Speed of Answer (Minutes) 
11 
18 
Level of Access24 
53.1% 
48.5% 
Source:  IRS management information reports (as of September 27, 2019, for 
Calendar Year 2019 and as of September 25, 2020, for Calendar Year 2020). 
The IRS plans to continue to allow toll-free employees to telework during Fiscal Year 2021.  In 
addition, IRS management increased their Fiscal Year 2021 hiring goal for the Accounts 
Management function from 3,579 new employees to 5,000 new employees – 4,000 of whom 
would be trained to answer toll-free telephone calls.  These additional employees are needed in 
order to meet the IRS’s Level of Service goals and reduce the time taxpayers wait to speak to an 
assistor.  However, IRS management noted that they may be unable to expand the number of 
employees answering taxpayer calls if they cannot meet their hiring goal.  As of 
November 23, 2020, the IRS planned to hire approximately 3,100 new employees to answer the 
toll-free calls.  IRS management stated that the decrease in planned staffing is due to a lack of 
anticipated applicants and delays in fingerprinting and processing applicants.  As of 
January 19, 2021, the IRS had hired 2,935 new employees to answer toll-free calls. 
Toll-free line and congressional inquiry e-mail created to assist taxpayers with 
EIP-related issues 
Recognizing that the EIPs would affect a large majority of taxpayers and the challenges 
taxpayers faced as a result of the pandemic, the IRS created a new toll-free EIP line on 
May 18, 2020.  The IRS does not take direct EIP calls from the public.  Instead, all calls start with 
an automated message and, if needed, are directed to a contractor.  On May 13, 2020, the IRS 
awarded a vendor contract to provide assistance with the anticipated demand of EIP telephone 
inquiries.  The contract requires vendor-hired telephone assistors to screen EIP calls and answer 
general questions from an IRS script.  If the taxpayer’s inquiry requires account research, the call 
must then be transferred to an IRS assistor. 
On May 18, 2020, the IRS announced that an addition of up to 3,500 vendor telephone assistors 
could be added to answer some of the most common EIP questions.  However, the contractor 
experienced staffing delays, outages, and technical difficulties that affected the quality of calls 
and the number of dropped calls.  For example: 
• 
Staffing Delays – The contractor was required to have 500 work-ready agents available 
on May 15, 2020.  However, IRS management stated that the contractor did not meet 
these staffing requirements until June 5, 2020.  IRS management stated that the 
                                                 
24 The Level of Access is computed by taking the sum of Assistor Calls Answered and Automated Calls Answered 
divided by the Total Dialed Number Attempts Open Hours. 

 
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Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
requirement to have 500 agents available in a very short period of time contributed to 
the reason for the delays in the contractor meeting this requirement.  In addition, the 
contractor was required to have 90 bilingual assistors by May 18, 2020, but did not 
provide sufficient bilingual assistors until June 25, 2020. 
• 
Technical Difficulties – The contractor experienced outages and technical difficulties, 
which caused poor call quality or prevented taxpayers from reaching an assistor.  For 
example, on June 10, 2020, the contractor was initially notified of audio quality issues.  
While limiting call volumes partially alleviated the issue, capacity limitations required 
installation of additional hardware, and the problems were not fully corrected until 
June 16, 2020.  According to IRS management, the poor call quality was a sporadic issue 
that occurred when the number of calls exceeded the contractor’s capacity.  In addition, 
the contractor did not have the capacity to handle the total number of calls received on 
the EIP line until July 9, 2020. 
According to IRS reports, as of November 28, 2020, the EIP telephone line received nearly 
24.6 million calls.  All incoming calls initially receive an automated informational message.  Of 
the total calls received, 13.6 million (55.3 percent) were abandoned by the taxpayer before 
moving into the contractor assistor’s queue,25 either because the caller’s issue was satisfied by 
the information provided by the automated messages or because the taxpayer grew frustrated 
and hung up.  Of the nearly 24.6 million calls received, 11 million (44.7 percent) were added to 
the contractor’s queue, of which: 
• 
4.8 million calls were answered by the contractor’s assistors without any IRS assistance. 
• 
3.8 million calls were abandoned or disconnected after being added to the contractor’s 
queue. 
• 
2.4 million calls were transferred to and answered by the IRS. 
The pandemic also caused an unexpected increase of congressional inquiries related to the EIPs.  
On May 14, 2020, while some telephones and other options were shut down, the IRS set up a 
mailbox to receive inquiries from congressional staffers regarding the EIPs.  Many of these 
inquiries required taxpayer account research, which resulted in the IRS training up to an 
additional 500 Accounts Management employees in July 2020 to help resolve these type of 
cases.  IRS management stated that, as of November 27, 2020, the IRS had received an 
estimated 127,050 inquires, of which 93,580 required account research, and closed an estimated 
78,900 (84 percent).  The IRS initially planned to discontinue the EIP mailbox for congressional 
inquiries on December 10, 2020.  However, the IRS continued to monitor the mailbox and, as a 
result of additional stimulus payments, the IRS now plans to leave the mailbox open. 
TAC assistance 
The IRS planned to assist approximately 2.3 million taxpayers at its TACs in Fiscal Year 2020,  
an approximately 4.2 percent decrease from Fiscal Year 2019.  The IRS reports that, when the 
TACs closed on March 20, 2020, IRS employees had answered more than one million calls to 
schedule an appointment.  Of these, 581,911 necessitated the taxpayer visit a TAC.  The 
                                                 
25 The contractor assistor’s queue is the waiting line to reach a contractor assistor. 

 
Page  22 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
remaining 498,590 callers were assisted without having to visit a TAC, and an additional 
79,106 taxpayers were assisted who did not have an appointment but visited a TAC. 
As of September 30, 2020, the IRS had reopened 237 (66 percent) of the 358 TACs, which are 
available to the public by appointment only.  An additional 26 TACs had reopened as of 
November 16, 2020.  When we asked IRS management why 95 TACs are still closed, they stated 
that they are still dependent on employees reporting to these locations and not being out due 
to COVID-19 exposures, etc. 
As of September 30, 2020, the IRS reported that IRS employees answered 1,361,035 calls to 
schedule an appointment.  Of these, 694,059 taxpayers were assisted without having to visit a 
TAC, while 666,976 necessitated scheduling an appointment and visiting a TAC.  When a TAC is 
closed, taxpayers would have to try to resolve their questions from the information on the IRS 
website or potentially have to contact a tax preparer for assistance.  Figure 16 shows a map of 
the TACs that remain open and closed as of November 16, 2020. 
Figure 16:  Open and Closed TACs as of November 16, 2020 
 
Source:  TIGTA’s analysis of the IRS’s Field Assistance function’s open/closed TAC list as of 
November 16, 2020. 
In addition to the services offered via the TAC appointment line and at TACs themselves, the IRS 
also offers these additional face-to-face initiatives: 
• 
Virtual Service Delivery – This initiative is an effort to expand face‐to‐face services to 
taxpayers when a TAC is not in their geographic area.  Taxpayers must make an 
appointment.  Virtual Service Delivery integrates video and audio technology to allow 
taxpayers to see and hear an IRS assistor located at a remote TAC, giving taxpayers 
“virtual face-to-face interactions” with assistors.  For the 2020 Filing Season, the IRS 
offers Virtual Service Delivery at 30 community partner sites and assisted 143 taxpayers. 

 
Page  23 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
• 
Co-Located Sites With the Social Security Administration – For the 2020 Filing Season, 
the IRS has placed employees in six Social Security Administration locations.  As of 
September 30, 2020,26 the IRS reported that 774 taxpayers have used the service. 
Services from the Virtual Service Delivery and the sites co-located with the Social Security 
Administration were also suspended during the COVID-19 pandemic.  This resulted in the 
number of taxpayers being assisted as of September 30, 2020, decreasing to 917 from the 
3,238 taxpayers assisted as of the same time frame the previous year (as of September 30, 2019). 
The IRS had a pilot prior to the pandemic allowing a limited number of TAC employees to 
provide virtual assistance to taxpayers through a web-based software, but this went on hold 
when the TACs closed.  IRS management indicated this pilot resumed testing on 
October 30, 2020, with a limited number of employees, and they hope to expand the pilot 
during the 2021 Filing Season. 
Assistance at Volunteer Program sites is lower due to COVID-19 closures 
The Volunteer Program plays an important role in the IRS’s efforts to improve taxpayer service 
and facilitate participation in the tax system.  It provides no-cost tax return preparation and  
e-filing to underserved taxpayer segments, including low-income, elderly, disabled, rural, 
limited-English-proficient, and Native American taxpayers.  Volunteer Program sites prepared 
more than 2.5 million tax returns as of September 30, 2020.  The number of tax returns prepared 
in Fiscal Year 2020 is significantly lower than the previous year.  For example, in Fiscal Year 2019, 
more than 3.5 million returns were prepared.  This decrease results from the fact that many of 
the volunteer sites are closed due to COVID-19. 
For example, as of April 1, 2020, the IRS website stated that, due to COVID-19, a number of 
Volunteer Income Tax Assistance sites and all Tax Counseling for the Elderly sites are closed for 
an undetermined period of time.  However, on April 13, 2020, the IRS Commissioner approved 
using Low Income Tax Clinic locations to provide free tax return preparation services during the 
2020 Filing Season.  The IRS explained that Low Income Tax Clinics are not prohibited from 
providing free tax return preparation services; however, it has been a longstanding policy that 
these locations only prepare current year returns in limited circumstances.  A total of 102 clinics 
prepared 3,020 returns as of June 2020.  As of September 30, 2020, 171 Volunteer Income Tax 
Assistance sites had reopened to assist taxpayers. 
The Accounts Management function continues to have a significant backlog of cases 
critical to taxpayers 
The Accounts Management function is responsible for assisting taxpayers with questions about 
the tax laws, their account, and the status of their refunds and adjusting their tax accounts when 
necessary.  At the time Tax Processing Centers were closed, the IRS reported that more than 
2.6 million cases remained in total Accounts Management inventory to be worked, and as of 
November 14, 2020, total inventory remained at more than 3.6 million cases.  At the request of 
IRS management, we calculated our estimated inventory completion based on the more than 
1.4 million cases in the adjustments portion of the Accounts Management inventory and used 
an estimated figure of 2.2 million cases for potential receipts.  This revision resulted in the IRS 
                                                 
26 For Fiscal Year 2020 – October 1, 2019, through September 30, 2020. 

 
Page  24 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
being unable to resolve this inventory until April 24, 2021.  Even with this extension, IRS 
management cautioned that completion of the inventory was contingent upon the potential for 
additional EIPs and inventory due to the 2021 Filing Season.  As of January 30, 2021, the IRS 
reported 2,011,458 cases were still in the Accounts Management adjustments inventory. 
Although the majority of cases worked by Accounts Management are electronic and portable, 
there are two factors that affect the IRS’s ability to address the type of cases worked. 
• 
Ability to scan correspondence into the Correspondence Imaging System – 
Correspondence from taxpayers that needs to be worked by Accounts Management is 
received and scanned at IRS Tax Processing Centers to enable employees working in 
remote locations to work the cases.  Because employees responsible for scanning this 
correspondence were unable to work in the Tax Processing Centers during the closures 
and the number of employees that have returned since reopening of the sites is less than 
normal, there was a direct impact on scanning inventory into the Correspondence 
Imaging System for Accounts Management employees to work. 
• 
Extensiveness of the process to make employees telework-ready – To make 
employees telework-ready, the IRS had to obtain the necessary equipment and 
encouraged employees to complete the necessary training and sign telework 
agreements with their managers.  Throughout the closure, IRS management continued 
to increase the number of telework-ready employees in order to remotely work the 
Accounts Management inventory.  For example, at the time of closure, a telework pilot 
included only 237 employees.  As of September 26, 2020, Accounts Management had 
13,732 (94 percent) of its staff who handle inventory reporting to work and 
1,078 employees remaining on weather and safety leave. 
IRS management stated that they will continue to offer overtime and plan to increase Fiscal 
Year 2021 staffing.  In addition, the IRS plans to continue allowing telework into the 2021 Filing 
Season and is looking into ways to expand telework opportunities to transition the majority of 
its workforce to telework and to make certain types of work portable. 

 
Page  25 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Appendix I 
Detailed Objective, Scope, and Methodology 
Our overall objective was to evaluate whether the IRS timely and accurately processed individual 
paper and e-filed tax returns during the 2020 Filing Season.  To accomplish our objective, we: 
• 
Monitored online news outlets and forums to identify any preparation, filing, or 
processing issues that taxpayers are experiencing. 
• 
Identified volumes of paper and e-filed tax returns received through November 13, 2020, 
from the IRS Weekly Filing Season reports to provide filing season statistics. 
• 
Determined whether IRS monitoring systems indicate that individual tax returns were 
being processed timely and accurately.  We monitored key IRS indicators, including the 
volume of tax return receipts, statistics from the IRS Filing Season Statistics Report, and 
Error Resolution volumes. 
• 
Ensured that interest was correctly paid on tax refunds due to individual taxpayers 
affected by the Federally declared disaster who filed their tax returns for Tax Year 2019 
on or before the postponed due date of July 15, 2020. 
• 
Identified results of the IRS tax refund fraud programs, including identity theft and 
prisoner refund fraud.   
• 
Identified results of the IRS customer service programs including the TAC Program, the 
Toll-Free Telephone Assistance Program, and the Volunteer Program. 
• 
Identified results for the IRS’s self-assistance options, including IRS.gov and the social 
media platforms. 
• 
Monitored the Accounts Management function’s over-aged inventory. 
Performance of This Review 
This review was performed with information obtained from the Wage and Investment  
Division Headquarters in Atlanta, Georgia; the Wage and Investment Division Submission 
Processing function offices in Cincinnati, Ohio; and the Information Technology organization in 
Lanham, Maryland, during the period November 2019 through December 2020.  We conducted 
this performance audit in accordance with generally accepted government auditing standards.  
Those standards require that we plan and perform the audit to obtain sufficient, appropriate 
evidence to provide a reasonable basis for our findings and conclusions based on our audit 
objective.  We believe that the evidence obtained provides a reasonable basis for our findings 
and conclusions based on our audit objective. 
Major contributors to the report were Russell P. Martin, Assistant Inspector General for Audit 
(Returns Processing and Account Services); Deann L. Baiza, Director; Sharla J. Robinson, Audit 
Manager; Sandra L. Hinton, Lead Auditor; Karen C. Fulte, Senior Auditor; Brieane Hamaoka, 
Senior Auditor; Tracy M. Hernandez, Senior Auditor; Branden L. Dreher, Auditor; Donald Meyer, 

 
Page  26 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Information Technology Specialist; and Laura Haws, Information Technology Specialist (Applied 
Research and Technology). 
Validity and Reliability of Data From Computer-Based Systems  
We used data extracts from the Individual Master File and the Individual Returns Transaction File 
for Processing Year 2020.  Prior to audit testing, we reviewed the data extracts to ensure that the 
extracted data were valid and reliable and contained the information needed for audit testing.  
We used judgmental samples to verify that the data contained in the extracts matched the 
information found in the Employee User Portal and Integrated Data Retrieval System databases.  
We determined that the data were sufficiently reliable for purposes of this report.  Audit tests 
were performed with the extracted data to determine whether the IRS adequately paid interest 
on refunds with timely filed returns.   
Internal Controls Methodology 
Internal controls relate to management’s plans, methods, and procedures used to meet their 
mission, goals, and objectives.  Internal controls include the processes and procedures for 
planning, organizing, directing, and controlling program operations.  They include the systems 
for measuring, reporting, and monitoring program performance.  We determined that the 
following internal controls were relevant to our audit objective:  the process for planning, 
organizing, directing, and controlling program operations for the 2020 Filing Season.  We 
evaluated these controls by monitoring IRS weekly production meetings, reviewing IRS 
procedures, and reviewing IRS reports. 

 
Page  27 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Appendix II 
Management’s Response to the Draft Report 
 

 
Page  28 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
 
 

 
Page  29 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 

 
Page  30 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Appendix III 
Glossary of Terms 
Term 
Definition 
Employee User Portal 
The internal IRS portal that allows employees to access IRS data and 
systems, such as tax administration processing systems and financial 
information systems, in a secure, authenticated session. 
Filing Season 
The period from January through mid-April when most individual income 
tax returns are filed. 
Fiscal Year 
Any yearly accounting period, regardless of its relationship to a calendar 
year.  The Federal Government’s fiscal year begins on October 1 and ends 
on September 30. 
Free File 
A free Federal tax preparation and e-filing program for eligible taxpayers 
developed through a partnership between the IRS and Free File Alliance 
LLC.  The Alliance is a group of private sector tax software companies. 
Individual Master File 
The IRS database that maintains transactions or records of individual tax 
accounts. 
Individual Returns 
Transaction File 
A database the IRS maintains that contains information on the individual tax 
returns it receives. 
Integrated Data Retrieval 
System 
IRS computer system capable of retrieving or updating stored information.  
It works in conjunction with a taxpayer’s account records. 
Level of Access 
A telephone performance measure recommended by TIGTA that reflects 
overall taxpayer call demand and IRS assistance by taking the sum of all 
assistor and automated calls answered divided by the total number of call 
attempts made during open hours. 
Level of Service 
The primary measure of service to taxpayers.  It is the relative success rate 
of taxpayers who call for live assistance on the IRS’s toll-free telephone 
lines.  The IRS’s measure is titled Customer Service Representative Level of 
Service. 
Master File 
The IRS database that stores various types of taxpayer account information.  
This database includes individual, business, and employee plans and exempt 
organizations data. 
Prisoner File 
The IRS compiles a list of prisoners received from the Federal Bureau of 
Prisons and State Departments of Corrections as well as Prisoner Update 
Processing System data from the Social Security Administration. 
Processing Year 
The calendar year in which the tax return or document is processed by the 
IRS. 
Social Distancing 
Limiting close contact with other people who are not from your household 
and maintaining a physical distance of at least six feet to reduce the spread 
of COVID-19. 

 
Page  31 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Tax Year 
A 12-month accounting period for keeping records on income and 
expenses used as the basis for calculating the annual taxes due.  For most 
individual taxpayers, the tax year is synonymous with the calendar year. 
Taxpayer Assistance 
Center 
An IRS office with employees who answer questions, provide assistance, and 
resolve account-related issues for taxpayers face to face. 
Volunteer Program 
Includes the Volunteer Income Tax Assistance Program, including the 
Volunteer Income Tax Assistance Grant Program, and the Tax Counseling 
for the Elderly Program.  The Volunteer Program provides free tax 
assistance to persons with low to moderate income (generally defined as 
within the Earned Income Tax Credit threshold), senior citizens, persons with 
disabilities, rural persons, those with limited English proficiency, and Native 
Americans. 
Weather and Safety Leave 
May be permitted when weather or other safety-related conditions prevent 
employees from safely traveling or safely performing work at an approved 
location, such as the official duty station or telework location. 
 

 
Page  32 
Results of the 2020 Filing Season and Effects of COVID-19 on Tax Processing Operations 
Appendix IV 
Abbreviations 
CARES Act 
Coronavirus Aid, Relief, and Economic Security Act 
COVID-19 
Coronavirus Disease 2019 
e-file(d); e-filing 
Electronically File(d); Electronic Filing 
EIP 
Economic Impact Payments 
IRS 
Internal Revenue Service 
TAC 
Taxpayer Assistance Center 
TIGTA 
Treasury Inspector General for Tax Administration 
 

 
 
 
 
 
 
 
To report fraud, waste, or abuse,  
call our toll-free hotline at: 
(800) 366-4484 
By Web: 
www.treasury.gov/tigta/ 
Or Write: 
Treasury Inspector General for Tax Administration 
P.O. Box 589 
Ben Franklin Station 
Washington, D.C. 20044-0589 
 
 
Information you provide is confidential, and you may remain anonymous.

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