Last year's refunds are still being delayed, leaving millions of frustrated taxpayers waiting as tax season begins.

• During tax season, the IRS received 119 million calls, resulting in a massive bottleneck for Alysha Holliday.
• In 2010, the agency had more permanent employees than in 2021, despite a decrease in the total number of employees due to the inclusion of seasonal and temporary workers.
• In an interview with CNBC, Treasury Deputy Secretary Wally Adeyemo stated that the IRS requires additional resources.

Last year's refunds are still pending for millions of taxpayers, although tax filing season started this week.

Alysha Holliday, a 30-year-old resident of North Olmstead, Ohio, filed an amended return in April following Congress's decision to make thousands of dollars in unemployment benefits tax-free.

Nine months later, the IRS is still processing her refund.

If you don't call at seven in the morning, you won't be able to speak with someone. I called at 7:30 a.m., but the automated line said they were too busy and to call back the next business day.

Holliday is caught in the enormous bottleneck at the IRS.

The IRS has been under immense strain due to the numerous challenges, including managing the federal stimulus checks and monthly child tax credit payments, which have overwhelmed the limited workforce, experts stated. During tax season, the IRS usually receives 35 million calls. However, last year, it received an unprecedented 119 million calls.

Staff shortages

The IRS had 81,600 employees in fiscal year 2021, including 10,500 seasonal and temporary workers, which is fewer than the number of permanent employees in fiscal year 2010. Treasury Deputy Secretary Wally Adeyemo stated in an interview with CNBC that the IRS requires more resources.

The IRS has the same number of employees today as they did in 1970, despite a 60 percent increase in the U.S. population, due to inadequate funding.

Adeyemo expressed his hope that Congress would allocate more funds to the IRS this year, as President Biden's Build Back Better plan included $80 billion for modernizing the agency and increasing enforcement. However, the bill has been stalled in the Senate due to disagreements among Democrats over a broader package.

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Holliday expressed her frustration and skepticism about receiving her money, as she has been waiting more than an hour and a half to speak with someone from the IRS. She has kept a record of every call she has made and has taken screenshots of her return's status, which she shared with CNBC.

Holliday, an insurance sales rep who is a mother of two, said she is supposed to receive $2,210 to make a down payment on a second car. She stated that having only one car in the household has been a strain on their daily lives, as her wife, Katie, usually takes the car to work while Holliday works from home.

Patience required

"I have to drive her 45 minutes to work, 45 minutes back and then drive back to pick her up from work. It's been just nuts," said Holliday.

The IRS backlog contains approximately 14.5 million returns with errors, including 2.3 million amended returns.

The American Institute of CPAs' president and CEO, Barry Melancon, emphasized the need for patience from taxpayers as it may take several months for the IRS to handle amended tax returns, which will most likely be processed manually.

According to Melancon, an amended tax return is used to rectify an error or respond to a request from the IRS. The time it takes to complete the amended tax return depends on the specific circumstances.

Holliday is uncertain about filing her tax return this year as she awaits the refund from last year.

Although I understand that it's difficult to assign blame, I believe it's unfair to those who are meeting their obligations by the deadline. I feel like we're being punished for it.