IRS Budget Cuts, Staffing Challenges Create Coronavirus Payment Headaches

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IRS Budget Cuts, Staffing Challenges Create Coronavirus Payment Headaches
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The IRS is under pressure to quickly disperse payments promised to most people in the $2.2 trillion coronavirus relief bill. But experts say it could take months for everyone to get checks.

"There's a dearth of people who are qualified to do the work and they're overworked," said Mark Everson, who served as IRS commissioner from 2003 to 2007 under President George W. Bush."If you're going to get a check in the mail, it could come as late as end of August."

Everson, who is now vice chairman at the business tax advisory AlliantGroup, says people confused about the payments shouldn't bother trying to call the IRS to try to figure out what to do. That reliance on Web updates creates another layer of confusion for many low-income and older people. Nina Olson, who served from 2001 through last August as the IRS internal watchdog known as the national taxpayer advocate, said many of the people without bank information on file also don't have access to the Internet.

Mnuchin says the IRS is rushing to put together a Web portal to allow people to update their bank and personal information so that they can take advantage of the direct deposits. But those aren't the only questions people have. Olson and Everson said these coronavirus-specific problems would have been hard for the agency to predict, but there is a lot the agency could have done to prepare for an economic disaster like the one facing the country today if it had the funding to do it.

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