Growing Collection Woes May Haunt IRS Years After Pandemic Ends

The tax collection backlog at the IRS has been building for years, worsening with each budget cut and workforce reduction. The coronavirus pandemic could make that hole—billions of dollars of uncollected money—even worse.

That’s because the agency has put much of its enforcement activity, including some audits, tax liens, and levies, on hold to help people who are in economic distress or unable to meet tax obligations because of Covid-19. That pause, paired with limited ability to receive phone calls and mail, a reopening plan that will have to play out in phases, and hastily enacted virus relief creating new ...