Tax News

IRS Stores Millions of Tax Forms In a “Cave” in Missouri: A Chicago Tax Attorney’s Perspective

By Kelly Hanley, Esq., Chicago Tax Attorney

As a seasoned Chicago tax attorney, I have seen firsthand how the intricacies of tax administration can impact both taxpayers and tax professionals. One aspect often overlooked is the physical handling and storage of tax documents by the IRS. A recent report by the Treasury Inspector General for Tax Administration (TIGTA), dated December 18, 2023 (Report Number: 2024-IE-R006), sheds light on critical issues at an IRS storage facility, the C-site in Missouri. This report not only highlights the immediate need for addressing employee safety but also raises broader questions about the efficiency and modernization of tax administration in the digital age.

Understanding the C-site: An IRS Storage Conundrum

Located in a man-made cave complex in Independence, Missouri, the “C-site” is a massive repository for millions of tax forms, including Form 709 (United States Gift and Generation-Skipping Transfer Tax Return), Forms 2848 (Power of Attorney and Declaration of Representative), and Forms 8821 (Tax Information Authorization). This facility is crucial for the IRS as it supports various tax administration functions, such as examinations and collections. However, the conditions within this cave-like setting have recently come under scrutiny.

The TIGTA Report: A Call for Immediate Action

The TIGTA report identifies several health and safety concerns at the C-site. Key issues include:

  1. Unsafe Storage Practices: The accumulation of unnecessary tax documents creates clutter and potential hazards. The recommendation to purge unnecessary documents and relocate Forms 2848 and 8821 to a different facility is a step towards better organization and safety.
  2. Inadequate Safety Equipment: The lack of proper ladders and the improper training in the use of fire extinguishers represent significant safety oversights.
  3. Neglected Employee Concerns: The report reveals that employee requests for basic safety equipment and improvements have been consistently ignored.
  4. Lease Uncertainty: With the lease of the C-site expiring in October 2024, the absence of a clear plan for the future poses a risk to the continuity of IRS operations.

Tax Administration in the Digital Era

As a Chicago tax attorney, I often advise clients on navigating the complexities of tax law, a task that frequently involves dealing with IRS documentation. The issues at the C-site, therefore, have far-reaching implications:

  1. Efficiency and Accessibility: Delays in retrieving forms from the C-site can slow down IRS processes, affecting everything from audits to tax resolution cases. This impacts taxpayers and professionals alike.
  2. Digital Transformation: This situation underscores the urgent need for the IRS to modernize its storage and retrieval systems. Digitizing documents could enhance efficiency, reduce physical storage needs, and improve accessibility for IRS employees and tax professionals.

Recommendations and Implications

The TIGTA report offers 18 recommendations, focusing on safety, efficiency, and future planning. Key recommendations include:

  1. Timely Purging of Documents: Developing a process for regularly purging unnecessary documents to reduce clutter and risk.
  2. Facility and Equipment Improvements: Finding suitable storage alternatives, improving ladder safety, and ensuring proper fire safety training and equipment.
  3. Addressing Employee Concerns: Responding to health and safety requests from employees, including better surveillance and protective measures.
  4. Planning for Lease Expiration: Evaluating options for the C-site post-lease expiration, including potential relocation or digitization initiatives.

A Chicago Tax Attorney’s Perspective

As tax professionals, we must advocate for efficient and safe tax administration. The IRS’s response to these recommendations will not only affect its employees but also the efficacy of tax administration as a whole. Implementing these changes will likely result in faster and more reliable access to important tax documents, ultimately benefiting taxpayers and tax professionals.


The TIGTA report on the C-site in Missouri is a stark reminder of the challenges facing tax administration in an increasingly digital world. As a Chicago tax attorney, I recognize the importance of balancing the safety of IRS employees with the need for efficient, modern tax administration. It is imperative that the IRS addresses these issues promptly, ensuring both the well-being of its workforce and the effective management of tax documents. As we move forward, the hope is that this situation will catalyze positive changes, leading to a more efficient, digital-first approach in tax administration.

This blog post is intended for informational purposes only and should not be construed as legal advice. For specific legal advice, please consult a professional Chicago tax attorney. Call us today at 312-345-5440 for a FREE tax attorney consultation.