In a recent audit, the Treasury Inspector General for Tax Administration announced the destruction of 30 million information returns filed with the IRS. The IRS now admits destroying the returns due to system constraints. The agency was required to process the backlog of documents by the end of the calendar year in which they were filed. The IRS uses the documents to conduct post-processing compliance matches to look for taxpayers not reporting income. The IRS asserts that no original returns filed by taxpayers were affected. No penalties will be added and “there were no negative taxpayer consequences as a result of this action,” the IRS stated. To read the audit: 


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