IRS Struggles: Mail Backlog

The IRS remains buried under roughly 90 million physical documents annually, including tax returns and checks. This massive paper trail causes processing delays and slows down refunds.

Their move to digital systems is being heavily hindered by outdated technology, budget shortages, strict security rules, and sheer volume. Just 5% of paper Forms 940 and 941 were digitized by May 2025. The IRS is trying to conquer this backlog and modernize its operations, the agency recently brought on four external contractors to scan incoming mail and speed up the workflow. Will this work who knows?