CHICAGO — U.S. Senator Tammy Duckworth, alongside fellow Illinois Senator Dick Durbin and a coalition of congressional lawmakers, is demanding an explanation from the Internal Revenue Service (IRS) over a growing problem: Americans receiving tax bills for payments they already made.
The issue, which has impacted taxpayers in Illinois and across the country, centers on significant processing delays and internal system failures at the IRS — all while Americans face stress, financial confusion, and potential penalties despite having done everything right.
Taxpayers Say They Paid — IRS Says They Didn’t
In recent weeks, CBS Chicago has reported an influx of Illinois residents receiving IRS notices claiming they failed to pay their taxes — even though funds were withdrawn from their accounts months earlier.
For example, Laura and Dustin Floyd of South Dakota paid $18,000 on deadline day, but were sent a second bill for the same amount, complete with penalties. Their confusion turned to panic.
“You did everything right, you played by the rules, and they come after you saying they lost your money?” said Laura Floyd. “It was terrifying.”
Attempts to reach the IRS for clarification often led nowhere, leaving families feeling abandoned by the very system that demands accountability from them.
IRS Staffing Cuts Raise Red Flags
A major part of the issue appears to stem from internal workforce reductions. According to a recent report from the Taxpayer Advocate Service (TAS):
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22% of frontline taxpayer support staff (9,000 jobs) were eliminated this year
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Overall staffing at the IRS has been reduced by 26%, or about 26,000 employees
These cuts were tied to decisions by the Department of Government Efficiency (DOGE), a federal initiative aimed at streamlining operations — though critics argue essential support roles were indiscriminately slashed.
Duckworth didn’t mince words, comparing the decisions to reckless corporate restructuring:
“This is what happens when Elon Musk comes in and fires a bunch of people without looking to see what job they were doing,” she said, referencing the tech-style efficiency push.
IRS Systems Still Stuck in the Past
Beyond staffing, the IRS’s outdated technology infrastructure may be compounding the crisis. The TAS report revealed that the agency uses 60 different case management systems that do not talk to each other, making it nearly impossible to track payment status efficiently.
This digital fragmentation has reportedly contributed to a backlog of 3.5 million individual tax returns, leading to late or erroneous notices being issued automatically.
Congressional Action: A Formal Oversight Letter
In response, Duckworth and Durbin have co-authored a letter to newly appointed IRS Commissioner William Long. The letter — signed by 12 Illinois Democratic representatives — cites CBS News Chicago’s investigative reporting and urges immediate transparency and action.
Among the signatories:
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Jonathan Jackson
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Robin Kelly
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Chuy García
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Mike Quigley
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Raja Krishnamoorthi
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Delia Ramirez, among others.
The lawmakers want clear answers on:
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Why taxpayers are receiving incorrect notices
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How the IRS plans to fix the payment processing delays
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What will be done to avoid this in the future
“We’re going to push as hard as we can, and we are going to stay on top of this,” Duckworth said.
Read the full letter here: IL Delegation Oversight Letter to IRS
IRS Responds — Barely
After weeks of public pressure, the IRS issued a brief response:
“Processing tax payments is a top priority… If a taxpayer has checked their online account and does not see the payment processed by July 15th, they may call the number on their notice.”
They also redirected staffing questions to the National Taxpayer Advocate’s office, which published the mid-year TAS Report to Congress.
Still, no detailed explanation has been given for the surge in erroneous billing notices — and the lack of public accountability has only deepened frustration.
What This Means for Illinois Residents
| Issue | Impact on Residents |
|---|---|
| Billing errors | Confusion, stress, and potential late fees for taxes paid |
| Customer support delays | Long wait times, unanswered calls, unresolved issues |
| Digital infrastructure gaps | No centralized tracking; errors harder to resolve |
| Staffing cuts | Fewer IRS workers means reduced oversight and responsiveness |
What Should You Do If You’re Affected?
If you’ve received an incorrect notice from the IRS:
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Log into your IRS account: irs.gov/account
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Check your payment status: Payments should appear under “Payment Activity”
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Wait until July 15: If your payment isn’t posted by then, call the number on the notice
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Document everything: Save your confirmation receipts and bank withdrawal statements
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Contact your U.S. representative or senator: Many have constituent support teams for tax issues
The Bigger Picture: Trust and Transparency
Beyond individual stress, this growing problem raises major questions about government competence, digital modernization, and public trust. If residents can’t rely on basic services like tax payment tracking, how can larger reforms be credibly enacted?
Taxpayers — especially in Illinois — already feel the weight of high taxes, slow services, and bureaucratic red tape. Incidents like these only deepen that distrust.
Have you or someone you know received a false bill from the IRS despite paying your taxes on time? We want to hear your story. Visit ChicagoSuburbanFamily.com to share your experience and stay updated on financial accountability issues that directly affect your community.
