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Hice, Clyde: IRS Backlog Handicapping Small Businesses Seeking SBA Loans

WASHINGTON—Today, Subcommittee on Government Operations Ranking Member Jody Hice (R-Ga.) and Congressman Andrew Clyde (R-Ga.) wrote Internal Revenue Service (IRS) Commissioner Charles Rettig regarding the substantial backlog at the IRS. This backlog is having a detrimental effect on all Americans, especially those applying for Economic Injury Disaster Loans (EIDL) through the Small Business Administration. To receive an EIDL loan, applicants must submit tax transcripts and other information, but delays in obtaining necessary documents from the IRS are preventing or slowing down the process for small business owners to pursue these loans.

“Small businesses are the lifeblood of our economy, employing roughly half of American workers. The IRS, however, is severely handicapping small businesses seeking assistance through Economic Injury Disaster Loans. Congress approved funding for this emergency aid months ago, but massive IRS delays are preventing many employers from obtaining the documentation needed to even apply. It is absolutely imperative that the IRS addresses these shortfalls and assures the American people that this backlog is finally going to be addressed,” said Subcommittee Ranking Hice.

“IRS backlogs are getting in the way for America to start recovering from this pandemic, especially for our small businesses who are trying to get Economic Injury Disaster Loans. The IRS owes us answers and solutions to this backlog. Their failure will simply keep America’s pandemic recovery on ice. Georgians need action now,” said Congressman Clyde.

Subcommittee Ranking Member Hice and Congressman Clyde are requesting an IRS briefing to inform Congress how the IRS plans to process taxpayer requests, especially those made by small businesses who need tax documents to prove EIDL eligibility.

The full letter is available here.

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Author: Amy Hasenberg

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