Backlogged IRS Is Problematic For Nonprofit Organizations

April 15, 2021

“This is what happens when you take an agency as important as the IRS and you start to drown it with budget cuts,” said Tony Reardon, the NTEU national president.

April 15, 2021

The article is roughly a year old, and the IRS has extended the filing date beyond the traditional April 15 date, however this will remain the day most Americans have the IRS at the top of their mind.

Even before the Covid pandemic the IRS was struggling to keep up with tax filings from individuals and organizations. The pandemic only served to make the nightmare worse. 

From the standpoint of the tax-exempt organization, this lack of responsiveness from the IRS could be the final straw for a struggling organization. Without a current IRS seal of approval, potential funders, who have more options than funds, can easily exclude giving to any organizations that find themselves in IRS limbo. 

It is the intent of some people in power that the IRS remain unarmed, underfunded and unable to be an effective agency in its tax-collecting mandate. This attitude has significant negative impacts in other areas. A well-funded and well run IRS is good for all Americans, except for maybe those looking to cheat the rest of us and not pay what they owe. 

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