IRS had a backlog of nearly 8 million paper business tax returns in 2020 due to pandemic

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IRS had a backlog of nearly 8 million paper business tax returns in 2020 due to pandemic
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The backlog was a 3,230% increase relative to the end of 2019, according to a report issued Tuesday by a Treasury Department watchdog.

The Covid pandemic caused a backlog of almost 8 million paper-filed business tax returns at the end of 2020, according to the Treasury Inspector General for Tax Administration.The IRS had reduced that backlog to 291,000 by July 2021, according to an IRS official.

The delays are largely a result of "unprecedented and drastic actions" the IRS took to protect employees and taxpayers during the Covid-19 pandemic, the report said.

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