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The Daily Insight

What is the problem with the IRS?

Author

Emma Jordan

Published Mar 28, 2026

IRS Funding Problems Because of funding shortages, the IRS cannot answer millions of taxpayers’ telephone calls or timely process their letters; the amount of tax due but uncollected stands at nearly $400 billion each year; taxpayers believe the tax laws are not fair; and the federal deficit is unnecessarily large.

Why is the IRS site saying my information is wrong?

Until the IRS starts processing it on their own, you may not find a record of it or the website may say that you have put in incorrect information when tracking your federal refund. As your return moves through the system, the status of it will be updated accordingly.

Is there a error department at the IRS?

Although I have never heard of an ‘error’ department, the IRS may review your return if they find an error when processing. If you e-filed, you should receive your refund in 21 days. Some tax returns take longer to process than others for many reasons, including when a return: Includes errors.

How do I escalate an issue with the IRS?

You can call your advocate, whose number is in your local directory, in Pub. 1546, Taxpayer Advocate Service — Your Voice at the IRS, and on our website at You can also call us toll-free at 877-777-4778.

When to call the IRS if your tax return is being processed?

The IRS will contact you by mail if and when they need any additional information from you to process your return. Should I call the IRS if my return is being processed? The IRS representatives can only research the status of your refund 21 days after you filed electronically or six weeks after you mailed your paper return.

What does it mean if your tax return is incomplete?

Your tax return is incomplete. This could mean that all of the necessary forms were not sent to the IRS for processing. Your return has been flagged for identity theft or fraud.

What to do if you use the wrong compensation definition for a SIMPLE IRA?

You used the wrong compensation definition to calculate deferrals and contributions to participants’ SIMPLE IRAs. Review the plan document to determine if you’re using the proper compensation for deferrals and contributions.

What happens if my tax return is delayed?

According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue EITC and ACTC refunds before mid-February. If your refund is delayed is does not automatically mean that you’re being selected for an audit. The IRS will contact you by mail if and when they need any additional information from you to process your return.