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Joe Biden asked to replace IRS chief Charles Rettig over tax document destruction

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Charles P. Rettig, Commissioner of the Internal Revenue Service, was a witness during the Senate Finance Committee Hearing titled The IRS Fiscal Year 2022 budget, at Dirksen Senate Office Building, Washington, D.C., on June 8, 2021.

Pool – Reuters| Pool | Reuters

On Friday, a leading House Democrat called for President Joe BidenTo replace IRS Commissioner Charles RettigThe agency’s controversy destruction of data related to 30 million paper-filed tax returns.

Representative Bill Pascrell, New Jersey’s chairman of the House Ways and Means Committee oversight subcommittee said that “The IRS is crucial to public confidence and our nation and its Trump appointed leader has failed.”

Pascrell stated that “this latest revelation increases the public’s sinking confidence in our unfair 2-tier tax system.”

The Democrat stated that this confidence is not possible to recover if the IRS is seen as incompetence or catastrophe by all Americans. The way we learn about destruction of paperwork unprocessed is the latest illustration of Mr. Rettig.”

Pascrell’s statements were not discussed by both the IRS and White House.

After the Treasury Department’s inspector general for tax administration released the findings of an auditThese have upset tax preparers.

According to the audit, the IRS still has a large backlog of tax returns from individuals and businesses that were not processed since June 2020 when the tax processing centers were reopened. That was months after the Covid-19 pandemic caused their closing.

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This inability to deal with backlogs of paper returns was “contributed by management’s decision in March 2021 to destroy approximately 30 million papers-filed information returned documents,” according to audit.

You can send W-2 forms, financial institution information and any other documents to these documents.

CNBC has heard from tax preparers that they are concerned about the IRS’s inability to verify the details of taxpayer returns. This could lead to delayed refunds.

“I was horrified to read the report describing how paper-filed information returns were destroyed,” declared Phyllis Jo Kubey president of New York State Society of Enrolled Agents.

On Thursday, the IRS stated that there were no adverse consequences for taxpayers as a consequence of this action.

According to the agency, “Taxpayers/payers have not been or will not be subjected to penalties resulting in this action.”

Pascrell rejected the claim. He stated that Ways and Means Committee Members and Other Congressmen “have displayed immense patience with IRS.”

Pascrell stated that “the career IRS staff performed admirably despite immense pressure, limited resources and almost impossible circumstances during the pandemic.” These challenges have been made worse by past sabotage by the Republicans of this agency in the past decade. I repeatedly showed deference in hearings to IRS reform efforts, but it is too late.

Later, he added: “This new revelation contributes to public’s sinking confidence in unfair two-tiered tax system. This confidence will not recover if the IRS and all Americans see is incompetence, catastrophe.

“Mr.Rettig was able to work with a lot of people and has plenty of time. This is a crucial step in the process of fixing the IRS. Real accountability is needed. He must quickly replace Rettig, and President Biden should also nominate Chief Counsel to the IRS.

— CNBC’s Kate Dore contributed to this report

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