Skip to main content
We may receive compensation from affiliate partners for some links on this site. Read our full Disclosure here.

BREAKING: IRS Destroyed 30 Million Documents!


The IRS shredded tax data for millions of filers, according to the agency’s own watchdog.

The destruction of 30 million paper tax returns enraged tax professionals and prompted a key Democrat lawmaker to call for the firing of the agency’s chief.

A report from the Department of Treasury’s Inspector General for Tax Administration revealed the destroyed data due to huge backlogs.

The report said bureaucrats gave up on working through the paper-filed information return documents and trashed them last year.

“The continued inability to process backlogs of paper-filed tax returns contributed to management’s decision to destroy an estimated 30 million paper-filed information return documents in March 2021,” the report stated.

The Daily Wire reported:

The documents, described as paper-filed information returns, are filed annually by employers and financial institutions, and include copies of the W-2 forms sent to taxpayers. The paperwork is used to verify the details on individual taxpayers’ returns, and without it, the IRS could see more delays and mixups, they predicted.

IRS Commissioner Charles Rettig blamed the backlog on budget cuts and the COVID pandemic, which resulted in offices being closed for long stretches.

“There were no negative taxpayer consequences as a result of this action,” the IRS said in a statement. “Taxpayers or payers have not been and will not be subject to penalties resulting from this action.”

Rep. Bill Pascrell, (D-NJ), called on the Biden administration to fire Rettig over the scandal.

“The IRS is vital to public confidence in our nation and its Trump-appointed leader has failed,” said Pascrell, chair of the House Ways and Means Committee’s oversight subcommittee.

NATIONAL POLL: Do You Trust Fox News?

Tax professionals were shocked that the agency dumped the massive trove of documents.

“I was horrified when I read the report describing the destruction of paper-filed information returns,” Phyllis Jo Kubey, president of the New York State Society of Enrolled Agents, told CNBC.

Missing information returns can cause a “mismatch” at the IRS, delaying refunds because the agency can’t verify details on a taxpayer’s returns, she explained.

While the eventual consequences of the decision are unknown, tax professionals have long complained about the stream of automated IRS notices, with limited options to reach the agency.

“If they’re not putting those into the system, there’s going to be discrepancies, which means potential notices that are sent out,” said Dan Herron, a San Luis Obispo, California-based certified financial planner and CPA with Elemental Wealth Advisors.

Although the IRS halted more than a dozen types of automated notices in February, Herron says the constant correspondence is still creating headaches for taxpayers and advisors.


Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Hey, Noah here!

Wondering where we went?

Read this and bookmark our new site!

See you over there!

Thanks for sharing!