Audit finds IRS destroyed 30M tax documents

An audit by the Treasury Inspector General for Tax Administration found the IRS destroyed 30 million taxpayer documents amid a backlog.

"This audit was initiated because the IRS’s 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," officials with the Treasury Inspector General said. "The IRS uses these documents to conduct post-processing compliance matches to identify taxpayers who do not accurately report their income."

IRS officials said there were "no negative taxpayer consequences."

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