Maryland Delegation Members Call on IRS to Expedite Tax Refunds for Constituents Facing Financial Hardship

Today, U.S. Senators Chris Van Hollen and Angela Alsobrooks and U.S. Representatives Steny Hoyer, Kweisi Mfume, Jamie Raskin, Glenn Ivey, Sarah Elfreth, April McClain Delaney, and Johnny Olszewski (all D-Md.) wrote to Internal Revenue Service Commissioner Billy Long regarding concerns with the agency’s deficient procedures for expedited processing of federal tax returns from taxpayers facing financial challenges. In their letter, they point to accounts from constituents showing that the IRS consistently fails to process the returns of constituents who have shown imminent risk of dire financial consequences in a timely manner – impeding taxpayers’ ability to avoid those consequences. The lawmakers’ impacted constituents include individual taxpayers as well as business owners – many of whom have been waiting several years for refunds they are owed. Noting that the Trump Administration’s mass layoffs of federal employees at the IRS have likely contributed to these processing delays, the lawmakers ask Commissioner Long to coordinate with the Taxpayer Advocate Service on solutions to handle financial hardship cases more efficiently to prevent taxpayers from facing avoidable financial harm. 

“We are writing on behalf of our constituents regarding expedited processing for emergency cases involving severe financial hardship, especially amidst recently-exacerbated IRS staffing challenges. Currently, the Internal Revenue Service (IRS) will only accept expedite requests from the Taxpayer Advocate Service (TAS) if the taxpayer can provide documentation of an immediate consequence,” the lawmakers began. “By the time a constituent has the required hardship documentation to expedite their case, they typically have 30 days at most before they and their families face serious distress, including homelessness.”

They go on to write, “once TAS receives the required financial hardship documentation and makes a recommendation to the IRS to expedite, there is currently no mechanism to ensure that the taxpayer’s case is handled with urgency. For example, in a recent Maryland case, a single mother of three submitted hardship documentation to TAS in September 2024, but she did not receive her federal tax refund until February 2025. As you might imagine, our constituents in these particular cases do not have several months to wait for a check that is owed to them by the federal government.

Regarding the challenges that Maryland businesses have faced, they added, “we continue to hear from Maryland businesses which filed claims up to three years ago and are still awaiting a refund for expenses promised by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the American Rescue Plan Act (ARPA). Unfortunately, businesses that submitted proof of hardship, such as payroll documentation showing an inability to compensate employees or satisfy rent, have not seen quicker results that those without an expedited processing request.

The lawmakers go on to urge Commissioner Long to coordinate with TAS to review and reform the current procedures – recommending that they work to ease hardship documentation requirements, streamline interdepartmental case transitions, and accelerate processing for those in urgent need.

A copy of the letter is available here and below.

Dear Commissioner Long:

We are writing on behalf of our constituents regarding expedited processing for emergency cases involving severe financial hardship, especially amidst recently-exacerbated IRS staffing challenges.

Currently, the Internal Revenue Service (IRS) will only accept expedite requests from the Taxpayer Advocate Service (TAS) if the taxpayer can provide documentation of an immediate consequence. Acceptable documentation typically includes a notice of foreclosure, eviction, utility shutoff, or car repossession. TAS advises that the IRS will not accept past-due bills, nor will it accept notices of intent to foreclose or evict. By the time a constituent has the required hardship documentation to expedite their case, they typically have 30 days at most before they and their families face serious distress, including homelessness.

Once TAS receives the required financial hardship documentation and makes a recommendation to the IRS to expedite, there is currently no mechanism to ensure that the taxpayer’s case is handled with urgency. For example, in a recent Maryland case, a single mother of three submitted hardship documentation to TAS in September 2024, but she did not receive her federal tax refund until February 2025. As you might imagine, our constituents in these particular cases do not have several months to wait for a check that is owed to them by the federal government. TAS explains that Case Advocates can ask the IRS to expedite a return for pipeline processing, but it cannot expedite the systemic processing of the return, which is generally 4-6 weeks. Even if a federal tax refund was issued in 4-6 weeks, which is sooner than many Marylanders in this situation have experienced, the refund would not reach the taxpayer soon enough to prevent the immediate consequence that the IRS requires before expediting the case in the first place.

Expedited processing for businesses is even more nebulous. We continue to hear from Maryland businesses which filed claims up to three years ago and are still awaiting a refund for expenses promised by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the American Rescue Plan Act (ARPA). Unfortunately, businesses that submitted proof of hardship, such as payroll documentation showing an inability to compensate employees or satisfy rent, have not seen quicker results that those without an expedited processing request.

We understand that recent IRS staffing challenges caused by the Trump Administration have made addressing emergency processing, among other issues, even more difficult. We would appreciate your working with National Taxpayer Advocate Erin M. Collins to review this process and advise how it can be improved. This should include the possibility of relaxing hardship documentation requirements and accelerating systemic processing for financial hardship cases. For example, it may help TAS to advocate for struggling taxpayers if it didn't need make a new expedite request every time a case moves between IRS departments. When it comes to protecting the most vulnerable among us, Americans deserve a tax system free from red tape.

Thank you for your consideration. We look forward to a response by July 31, 2025.

Sincerely,