- At the start of the tax season in 2021, the IRS was still working through those paper returns from the 2019 tax year. That meant it was already dealing with an existing backlog when it began accepting 2020 tax returns in February. At the same time, the IRS is coping with tax changes passed into law by Congress this year.
How long is the IRS taking to process refunds in 2021?
IRS Commissioner Chuck Rettig told reporters on Monday that most people who file an error-free 2021 tax return online and request a direct deposit will receive their refund within 21 days. 5
Are 2021 tax returns delayed?
That means 2021 tax refunds are likely to be delayed; usually electronic refunds come three weeks after filing, a week faster than ones for paper returns. Based on last year’s experience, getting answers from the IRS will be even harder than usual, too. 23
Why is it taking so long for my taxes to be approved 2021?
What’s Taking So Long? If you don’t receive your refund in 21 days, your tax return might need further review. This may happen if your return was incomplete or incorrect. The IRS may send you instructions through the mail if it needs additional information in order to process your return.
What does it mean if my tax return is still being processed after 21 days?
The IRS will issue most refunds in less than 21 calendar days. This could mean that all of the necessary forms were not sent to the IRS for processing. Your return has been flagged for identity theft or fraud.
How long can the IRS hold your refund for review?
The IRS can go back through three years’ worth of returns or review up to six years if they find a serious error.
When can I expect my 2021 tax refund?
Most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return, according to the IRS. Some tax filers are still complaining that they did not receive their refund yet from federal returns filed last year.
Is there a delay in tax refunds?
“IRS employees want to do more, and we will continue in 2022 to do everything possible with the resources available to us.” The IRS says most refunds are issued within 21 days of the return being filed.
When should I expect my 2022 tax refund?
Most taxpayers who file electronically and choose direct deposit will get their refund within 21 days, assuming there are no problems with the return, according to the IRS. 2
How long after it says refund is being processed?
The IRS says: It should take 21 days to issue a refund once it has been processed. If it has been longer than this, several factors may be holding it up. Before you start to panic, take into consideration the process and what is going on with your paperwork.
Why have I not received my tax refund 2021?
If you haven’t received your tax refund after at least 21 days of filing online or six weeks of mailing your paper return, go to a local IRS office or call the federal agency (check out our list of IRS phone numbers that could get you help faster). But that won’t fast-track your refund, according to the IRS.
Why is tax return still being processed?
He said the IRS is still processing $9.8 million tax returns from 2020. The delays are mostly due to errors in filing, some having to do with the economic stimulus payments. Those with children in day care or after-school programs may also be eligible for a tax credit to help cover the increasing cost of child care. 5
What does it mean when the IRS says your tax return has been received and is being processed?
This means the IRS has processed your return and has approved your refund. The IRS is now preparing to send your refund to your bank or directly to you in the mail if you requested a paper check.
Why are refunds taking so long?
Some tax returns take longer to process than others for many reasons, including when a return: Includes errors, such as incorrect Recovery Rebate Credit. Includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit.
Does still being processed mean audit?
If my refund on the IRS website says still processing does it mean I will be audited? There’s absolutely no reason to necessarily think that you’re under review or that an audit is pending, so please don’t worry. The “processing” message you see is perfectly normal. In fact, the messages and bars on the IRS.
Why is my tax return still processing after 5 months?
One reason for this is because the IRS may still be making changes to their processes. That could include updated security measures or process tweaks due to changes in the tax code. And if the IRS needs to update or make changes, it probably won’t make them until just before tax time.
Your tax refund might be delayed this year, the IRS warns
It was with a caution that the Internal Revenue Service announced the start of tax filing season on Jan. 24: file early since the agency anticipates difficulties in processing returns and issuing refunds this year. According to IRS Commissioner Chuck Rettig, “we are unable to provide the level of service and enforcement that our taxpayers and tax system deserve and require.” We want to continue to accomplish everything we can with the resources at our disposal in 2022, because IRS personnel want to do more.
However, for a variety of reasons, it is possible that it will take longer this year.
That’s hundreds of thousands of dollars higher than the normal yearly backlog.
Aside from that, the agency continues to be understaffed, with the majority of that employees dealing with Covid-related tax adjustments such as the third economic impact payment and the child tax credit payments.
If you file your federal tax return online early — remember, filers may submit their federal tax forms starting on January 24 — and select direct deposit, you will receive your refund the quickest.
A challenging time
The majority of refunds are processed in fewer than 21 calendar days. If your tax return requires further scrutiny, it is likely that it will take longer to complete. Where Has My Refund Gone? provides the most up-to-date information about your refund that is currently available For some 2020 tax returns that require review, such as those that contain incorrect Recovery Rebate Credit amounts or those that used 2019 income to calculate the Earned Income Tax Credit (EITC) and Additional Child Tax Credit, the Internal Revenue Service is taking more than 21 days to issue refunds (ACTC).
I’m counting on my refund for something important. Can I expect to receive it in 21 days?
Following the receipt of your return, a number of different circumstances might influence the timeliness of your reimbursement. Despite the fact that we provide the majority of refunds in less than 21 days, it is conceivable that your refund will take longer. Please bear in mind that your financial institution may require a period of time before crediting your account or mailing you a refund.
It’s been longer than 21 days since the IRS received my return and I haven’t gotten my refund. Why?
- It has flaws, such as an inaccurate Recovery Rebate Credit
- It is insufficient
- And it requires more examination in general. Has been a victim of identity theft or fraud
- Included is a claim for the Earned Income Tax Credit or the Additional Child Tax Credit that has been lodged. See the Q&A section below. In addition, there is Form 8379, Injured Spouse AllocationPDF, which might take up to 14 weeks to be processed.
For the most up-to-date information on IRS return processing during the COVID-19 epidemic, see theIRS Operations Status website (in English). When (or if) we require further information from you in order to process your refund, we will notify you by letter.
As long as we’re still processing your return or making corrections to a mistake, neither Where’s My Reimbursement? nor our phone specialists will be able to offer you with an estimated refund date in advance. Please go to Where Has My Refund Gone? for the most up to date information on your refund.
I claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) on my tax return. When can I expect my refund?
According to the Protecting Americans from Tax Hikes (PATH) Act, the Internal Revenue Service is not permitted to provide EITC and ACTC refunds before the middle of the month. When taxpayers choose direct deposit and there are no additional concerns with their tax return, the IRS anticipates that most EITC/Additional CTC refunds will be available in their bank accounts or on their debit cards by March 1. Some taxpayers, on the other hand, may receive their refunds a few days early. Check Where’s My Refund to find out when you will receive your customised refund.
The IRS2Go smartphone app, as well as IRS.gov, continue to be the most convenient ways to check the status of a refund.
Will calling you help me get my refund any faster?
If Where’s My Refund? urges you to call us, our personnel will be unable to give you with any extra information until you specifically request it. If the message “Where’s My Reimbursement?” indicates that we are still processing your return, our personnel will be unable to provide you with an exact refund date.
What information doesWhere’s My Refund?have?
Typically, we will provide you with information on the most recent tax year refund we have on file for you.
Can I use Where’s My Refund? to check the status of a refund on a prior year return.
Where Has My Refund Gone? will show you the current status of your most recently filed tax return during the previous two tax seasons.
When can I start checkingWhere’s My Refund?for my refund’s status?
My Refund Hasn’t Arrived the status of your most recent tax return during the last two fiscal years will be displayed on the screen
WillWhere’s My Refund?show me when I’ll receive my refund?
Where Has My Refund Gone? After we have processed your return and approved your reimbursement, we will contact you to set up a specific day for you.
Will ordering a transcript help me find out when I’ll get my refund?
A tax transcript will not assist you in determining when you will get your refund. There is no guarantee that the information transcripts have about your account will accurately reflect the amount or timeliness of your refund. They are ideally suited for verifying prior income and tax filing status for mortgage, student, and small business loan applications, as well as for assisting with tax preparation and production of tax returns.
I’m a nonresident alien. I don’t have to pay U.S. federal income tax. How do I claim a refund for federal taxes withheld on income from a U.S. source? When can I expect to receive my refund?
Nonresident aliens who receive income from a source in the United States must disclose the necessary income and withholding amounts on Form 1040-NR, U.S. Nonresident Alien Income Tax ReturnPDF in order to be eligible for a refund of federal taxes withheld on such income. When you submit your Form 1040NR, you must include any supporting documentation that demonstrates your income and withholding levels. To complete a 1040NR return, we require more than 21 days of processing time. Please anticipate up to 6 months for your refund to be processed from the date you filed your 1040NR.
How will I know you’re processing my tax return?
Where Has My Refund Gone? tracks the progress of your tax return from its reception until its conclusion. It will notify you when your return has been received as well as if your refund has been accepted or has been issued.
What is happening whenWhere’s My Refund?shows my tax return status as received?
We have received and are currently processing your tax return.
What is happening whenWhere’s My Refund?shows my refund’s status as approved?
We’ve authorized your request for a refund. Currently, we are prepared to issue a refund through your bank or straight to you through the mail. This status will inform you as to when we will transfer the funds back to your bank account (if you selected the direct deposit option). You should check with your bank about your refund 5 days after we’ve issued it because banks differ in how and when they credit monies to accounts. If you get a refund cheque in the mail, please allow several weeks for it to arrive.
How long will it take for my status to change from return received to refund approved?
It can take a few days in certain cases, but it could take longer.
DoesWhere’s My Refund?always display my refund status showing the different stages of return received, refund approved and refund sent?
The process can take a few days in certain cases, but it might take longer.
DoesWhere’s My Refund?update often?
It may take a few days in certain cases, but it might take longer.
WillWhere’s My Refund?give me my amended return’s status?
No, it will not provide you with information on revised tax returns. What happened to my Amended Return? can provide you with information on the current status of your amended return. The status of your modified return may only be researched by our phone and walk-in staff if it has been 16 weeks or more since you submitted it in.
I requested a direct deposit refund. Why are you mailing it to me as a paper check?
- We can only deposit refunds into accounts in your own name, the name of your spouse, or the name of a joint account
- Otherwise, we cannot repay you. A direct deposit may be rejected by a banking institution. The amount of electronic refunds that can be deposited into a single bank account is limited to three
Why is my refund different than the amount on the tax return I filed?
It is possible that all or part of your return was utilized (offset) to pay down past-due federal tax, state income tax, state unemployment compensation obligations, child support, spousal support, or other federal nontax debts, such as student loan debt. If you believe you may be entitled to an offset, or if you have any questions concerning an offset, you should contact the collection agency to which you owe the amount. We may have also adjusted the amount of your refund as a result of the modifications we made to your tax return.
You’ll receive a notification informing you of the changes.
page will show the reasons for the refund offset.
What should I do when the refund I receive is not from my tax account?
We ask that you refrain from cashing the refund cheque or spending the direct deposit return. Return the money to us in its original form. Tax Topic 161, Returning an Erroneous Refund — Paper Check or Direct Deposit, explains how to return an incorrect refund. gives further information about what to do
IRS begins 2022 tax season; urges extra caution for taxpayers to file accurate tax returns electronically to speed refunds, avoid delays
The deadline for IR-2022-18 is January 24, 2022. WASHINGTON — The U.S. Department of State has issued a statement saying that The Internal Revenue Service (IRS) today began the tax filing season for the year 2022 with an urgent warning to taxpayers to take additional care this year to file an accurate tax return online in order to expedite refunds and avoid penalties. The start of this year’s tax season – which occurs earlier than last year’s February 12 opening – means that the Internal Revenue Service (IRS) is already collecting and processing tax returns for the year 2021.
- Due to the Emancipation Day holiday in Washington, DC coming on April 15, the majority of taxpayers will have to file their returns by April 18.
- Chuck Rettig, Commissioner of the Internal Revenue Service, stated that taxpayers should exercise extra caution this year because of many significant tax law changes that took effect in 2021 as well as ongoing issues relating to the epidemic.
- Before submitting their taxes, we strongly advise people to double-check their work for correctness.
- The average tax refund received by taxpayers last year exceeded $2,800.
- “Some of the efforts that consumers may take to reduce delays include filing electronically and utilizing internet resources rather than phoning.” “IRS workers will do all in their power with the resources at their disposal to help taxpayers this year,” Rettig declared.
The Internal Revenue Service (IRS) appreciates you for submitting your taxes, which is an important part of assisting our wonderful nation.”
IRS tips for a smooth filing season:
Refunds are processed as quickly as possible through e-filing and avoiding paper returns: In order to minimize refund delays, it is more necessary than ever this year to file your tax return electronically with direct deposit and to avoid filing a paper tax return. Using software, a trustworthy tax expert, or the IRS’s Free File option on IRS.gov can help you get a tax refund more quickly if you need one immediately. Avoid delays by filing a tax return that is accurate: This year, the Internal Revenue Service (IRS) is urging people to double-check that they are prepared to complete an appropriate tax return.
- Beneficiaries of the EIP and the advance Child Tax Credit receive special attention: The Internal Revenue Service also advises those who got a third Economic Impact Payment or an advance Child Tax Credit in 2021 to exercise care.
- Incorrect entries made while reporting these payments may need a second evaluation of the tax return by the IRS, which will result in a significant delay.
- Individuals can also verify the amount of their payments in their Online Account, which is accessible at IRS.gov.
- This additional period is provided by the law in order to assist the IRS in preventing false refunds from being given.
- the most effective choice for assistance: When you need assistance, IRS.gov is the quickest and most convenient alternative.
- Avoid any unnecessary delays: Check IRS.gov first for information on refunds and answers to tax-related inquiries.
- The Online Account function has recently been expanded to provide for more accessibility by a larger number of users.
Consider submitting an application for CTC and other useful credits: People who do not normally file a tax return and who did not file a 2020 return or use the Non-Filers tool may still be eligible for important credits that they are eligible for, such as the Recovery Rebate Credit (stimulus payment), the Advance Child Tax Credit, and the Earned Income Tax Credit, even if they did not file a tax return in 2019.
- The Internal Revenue Service (IRS) urges persons in this category to file a tax return in 2021 so that they can claim all of the credits for which they are qualified.
- There is no need to make an appointment or wait in line because online tools and resources are available 24 hours a day, seven days a week.
- Additionally, via the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs, qualified taxpayers can get free one-on-one tax preparation assistance from volunteers around the country.
- Tips for completing your tax return for the year 2021: It is still possible for persons whose tax returns from 2020 have not yet been completed to file their tax returns for 2021 at this time.
- When filing online, taxpayers must have their most recent Adjusted Gross Income, sometimes known as AGI, from their most recent tax return.
- You may learn more about this by visiting Validating Your Electronically Filed Tax Return.
Taxpayers who have not yet filed their returns have until April 18 to do so; automatic six-month extensions of time to file are available to anybody who files Form 4868, Application for Automatic Extension of Time to File United States Individual Income Tax Return, by April 18.
”I am needing the money right now to pay on my mortgage”: Taxpayers still waiting for 2020 refund
RALEIGH, N.C. (WTVD) – The city of Raleigh is preparing for a blizzard. With fewer than two months remaining in the year 2021, 9 million individuals are still waiting for their federal income tax refunds from the previous year, according to the IRS. “I haven’t heard anything yet,” said Anthony Knight, a resident of Raleigh. He has documentation proving that he filed his taxes in March of this year and has been waiting for his almost $8,000 return since then. Then he went on to say, “It’s the most aggravating thing in the world right now.” He claims to have phoned the Internal Revenue Service dozens of times for an update.
- Mary Tuck, a Roxboro resident, is also still waiting for her reimbursement from the year 2020.
- She is also battling cancer at the same time that she is suing the IRS for answers.
- Returns are being delayed when an error or inaccurate information is entered on a return, according to CPA Aradhana Aggarwal, who has her office in Durham.
- “Once the snag is established, the IRS is now so backlogged that everything takes an inordinate amount of time,” Aggarwal explained.
- Throughout the past year, ABC11 has reported the difficulties the Internal Revenue Service is experiencing in processing 2020 tax returns.
- The Internal Revenue Service worked hard over the last year to reduce the backlog, but it has not accomplished its goal.
In my experience, folks have been waiting for as long as five or six months, despite the fact that their returns were submitted electronically and that the usual processing period is still 21 days.” Aggarwal stated that retroactive laws, such as exempting up to $10,200 in unemployment benefits from taxation, as well as new IRS rules, were detrimental to the processing time.
- Some of the modifications are temporary, while others are permanent, but because of the numerous changes that have occurred, it has been extremely difficult for the IRS to keep up “” she explained.
- According to the government, it is having to rectify much more errors than in past years, and refunds for returns that require modification might take up to four months to process.
- The Internal Revenue Service (IRS) posted on the internet, “Tax returns are examined and processed according to the sequence in which they are received.
- If we can resolve the situation without contacting you, we will do so.
Your response time and accuracy, as well as the ability of IRS staff who have been trained in social distancing requirements to complete your return processing, will determine how long it will take to resolve these issues, which could range from 90 to 120 days “There are several reasons why your tax return may take longer to process:
- It is necessary to correct the amount of the Recovery Rebate Credit
- Is insufficient
- Has been compromised by identity theft or fraud
- A claim for an Earned Income Tax Credit or an Additional Child Tax Credit that is based on income from the current year is included. The package also contains Form 8379, Injured Spouse Allocation, which might take up to 14 weeks to be processed. In general, it is necessary to do more research.
THE STEPS TO TAKE IN ORDER TO RECEIVE YOUR REFUND If you haven’t received your tax return yet, you may check the progress of your application online at What Happened to My Refund? Alternatively, you may access your account online by clicking here. After filing online and receiving an acknowledgement, the IRS stated that you are not required to take any additional action beyond responding quickly to any requests for information that may be sent your way. You may check Where’s My Refund to see whether the IRS has received your paper return and if it says the IRS is processing or reviewing your return.
- According to the IRS, there is no need to submit a second tax return.
- While it may be difficult to get through, dialing first thing in the morning may be more successful because wait times are often less.
- to 7 p.m.
- WTVD-TV retains ownership of the copyright until 2022.
Why Your 2022 Early Tax Return Will Be Delayed
If you expect to get a tax refund, the most popular piece of advise is to submit your tax return as soon as possible after receiving it. There is no longer any justification for allowing the government to keep your money. The filing of your early tax return will be delayed for certain filers this year, due to a variety of factors, including new regulations, identity theft, and others. During the last few years, the number of cases of identity theft involving taxes has increased dramatically. In order to mitigate the risk of financial loss as a result of identity theft, Congress approved legislation requiring the Internal Revenue Service to postpone delivering refunds to those who claim certain deductions (the ones most likely used by identity thieves).
In particular, a large number of first-time filers will have difficulty dealing with concerns relating to the Advance Child Tax Credit.
The unfortunate reality is that many honest people may have their tax returns delayed by many weeks as a result of this.
To be more specific, you may check out our projected tax refund calendar to find out when you can expect to get your tax return.
Advance Child Tax Credit Reconciliation
The Internal Revenue Service (IRS) began delivering Child Tax Credit payments to qualified families on a monthly basis last year in an effort to provide more cash to families in need. As a consequence, almost 35 million families throughout the United States began getting this assistance. Please note that this additional payment was essentially an advance on your child tax credit for fiscal year 2020-22! As a consequence, you’ll need to reconcile any payments you’ve made, and you may find that you owe the IRS a refund or that you’re entitled to more funds.
In addition to keeping this letter with your tax records, you may need to refer to it when submitting your 2021 tax return during the 2022 tax filing season, if you received an advance Child Tax Credit payment.
For those that filed their taxes early, though, you may not want to wait for this notice (or it could be incorrect anyway). Therefore, we believe that many early filers may have their tax returns held up at the IRS as a result of the new Child Tax Credit, which was just implemented.
Early tax filers are expected to experience significant delays as a result of the IRS’s personnel shortage. The explanation is straightforward: because of the epidemic, many IRS employees will be forced to stay at home or become ill, causing delays. Considering that the IRS is still behind on processing mail and tax returns from the year 2021, we might expect delays in the processing of tax returns. The Internal Revenue Service (IRS) will launch e-File on January 24, 2022, in the year 2022. The IRS, on the other hand, stated in their notification that they were experiencing severe manpower shortages and that there was the risk for delays.
After months and months of work last year, the Internal Revenue Service is still behind schedule with regard to processing postal returns and responding to other correspondence.
Everything that requires the attention of a real human being is going to be delayed as a result of the pandemic’s staffing shortage.
Delays For EITC and Child Tax Credit
A crook’s strategy is to file as many tax returns as possible in the shortest amount of time. You see, the IRS operates on a first-come, first-served basis when it comes to processing requests. If someone else files your tax return in your name before you do, and then steals your refund, they are the ones who have won the race. For the government, they will end up paying you the right return, but they will also have lost the money that was diverted to criminals in the first place. The simple truth is that they are delaying your tax return because they do not want to incur any further financial losses.
If you’ve been a victim of identity theft, you’ll have to submit a slew of paperwork to the Internal Revenue Service in order to get the identity theft issue fixed.
It’s a lengthy procedure that is not always straightforward.
The purpose of this exercise is to determine whether or not two tax returns have been submitted for the same individual.
What Types Of Tax Returns Does This Impact?
However, it is crucial to highlight that not all tax returns are being delayed as a result of this new legislation. Only those tax returns that contain the following tax credits are being kept for examination:
- The Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) are two of the most popular tax credits.
Because they are what are known as Refundable Tax Credits, these are most likely the tax credits that criminals take advantage of the most. This implies that even if you do not owe any taxes as a result of having a low or moderate income, you may be eligible for a refund for these tax credits. If you’re a criminal wanting to make as much money as possible, you’ll almost certainly want to submit a tax return that includes these tax credits.
Low and moderate income tax payers, on the other hand, would have to wait longer for their tax returns than they did in past years as a result of this change.
How Long Do I Have To Wait For My Refund?
So, how long do you expect my tax return to be delayed? It all depends on the situation. The Internal Revenue Service (IRS) continues to estimate that 90 percent of taxpayers will get their refunds within 21 days. If you file early, the Internal Revenue Service will hold your refund until February 15, after which it will begin processing your return. As a result, you may experience a delay until the middle or end of February. Using information from previous years, we’ve created a projected tax refund schedule that we feel is quite accurate.
If you want to get a head start on your taxes, have a look at our recommendations for the best tax software for first-time taxpayers.
Tax Refund Delay: What to Do and Who to Contact
As a result, how long will it take for my tax return to be processed? Depending on the situation. The Internal Revenue Service (IRS) continues to estimate that 90 percent of taxpayers will get their refunds in less than 21 days. If you submit your return early, the IRS will hold your refund until February 15, after which it will begin processing your refund immediately. Consequently, you may experience a delay until the middle or end of February. Using data from previous years, we’ve created an expected tax refund schedule that we feel is quite realistic.
You may get a head start on your taxes by using one of our recommendations for the best tax software for first-time taxpayers.
How Long It Takes the IRS to Process a Tax Refund
The Internal Revenue Service (IRS) typically issues a refund within 21 days of “accepting” a tax return. If you file your return electronically, the Internal Revenue Service (IRS) may take up to three days to process your return. If you want to ship your return, it may take an extra three weeks (the IRS has to manually enter your return into the system first). If you choose to receive your refund in the form of a check rather than a direct transfer, you should factor one additional week into your time estimate.
The Internal Revenue Service claimed it intended to issue more than 90 percent of refunds within 21 days of e-filing 2020 tax returns (which will be filed in 2021).
This was, of course, before the coronavirus epidemic struck and health regulations forced the closure of offices across the country, including the IRS.
According to the IRS, the typical tax return in 2020 will be $2,500.
Nevertheless, according to the National Taxpayer Advocate, the IRS finished the extended tax season with a “backlog of more than 35 million individual and business income tax returns that require manual processing,” which means that IRS employees must conduct an additional review before a refund can be processed.
For the sake of comparison, the tax season in 2021 began on February 12. This means that the earliest day taxpayers received a refund in the prior year was February 26 for direct deposits and March 5 for paper checks (see chart below).
How Can I Track My IRS Refund?
If you are still anticipating a tax return, you may use the IRS Where’s My Refund service to check on the status of your 2021 income tax refund. Taxpayers will be required to provide personal information such as their Social Security number or Individual Taxpayer Identification Number, as well as the status of their tax return and the amount of money they anticipate to receive as a refund. Taxpayers can also check on the status of their refunds using the IRS2Go smartphone application. You will also be able to make tax payments and receive free tax assistance using the app (as long as you qualify).
The IRS TREAS 449 indicates that your refund has been lowered in order to settle a tax liability with the government.
If a taxpayer fails to submit any needed forms or schedules, he or she may be compelled to file an amended return.
Reasons for a Tax Refund Delay
There is no one cause for a tax refund to be held up by the Internal Revenue Service. On the contrary, there are a variety of distinct conditions that might influence how long it takes you to get your refund from Uncle Sam. As an example, you may have made a mistake on your tax return, input the incorrect bank account information for the refund, filed your return too soon, or any number of other reasons. We’ve included numerous typical reasons why your tax return can be delayed in the section below.
You Claim Certain Credits
If you submit your tax return early and claim the earned income tax credit (EITC) or the extra child tax credit (ACTC), you will have to wait a little longer for your refund to be processed. According to the legislation, the Internal Revenue Service (IRS) must wait until February 15 before issuing refunds to individuals who claimed either of the two credits. President’s Day, as well as bank processing periods, might cause your refund to be delayed even longer. If the hold is placed on your application because you filed before the middle of February, there is no need to be concerned.
Alternatively, if you filed later than that, the IRS may have issues or request further information, in which case you should get a letter outlining what it required in order to proceed.
feature (available on the IRS website).
Filing Early or Late
Early filers may have to wait a long time for refunds to be processed. One explanation for this might be that the IRS is still in the midst of implementing adjustments to its procedures. Updated security measures or procedure improvements owing to changes in the tax code are examples of what may be included. If the IRS has to update or make modifications, it will most likely not do so until right before tax season. If you submit your taxes early in the tax season, your refund may be delayed as a result of the high volume of requests received by the IRS at this time.
Similarly, towards the end of tax season, the same is true. The vast majority of taxpayers either file as soon as they are able or wait until the last minute before the tax day deadline to do so. It will take some time to go through a large number of results.
New Security Measures
In today’s society, identity theft is a serious threat to people’s safety. The Internal Revenue Service maintains stringent security measures in order to fight the danger. Some security precautions will force the Internal Revenue Service to lengthen the time it takes to process tax returns (and refunds). If the Internal Revenue Service thinks that someone has attempted to steal your identity (by submitting a false tax return), your return may be delayed. You would then have to wait until the IRS has completed its investigation and has determined that you are who you claim to be before filing your tax return.
- This will cause a delay in the processing of your refund, but it is only a security measure.
- Because of the additional security measures, several state governments have also said that they will take longer to process tax returns in the future.
- For example, typically, Alabama has not begun giving refunds until the first week of March.
- If you’re looking for information on where your state return is, check out this post on where your state refund is.
You Filed a Paper Return
As previously stated, the Internal Revenue Service often takes longer to process paper returns than it does to process electronically submitted taxes. That means you will have to wait longer for your return—and considerably longer if you want your refund in the form of a check. If you file a paper return by certified mail, the Internal Revenue Service will take longer to complete your return and issue a refund. Speaking of paper returns, you will need to file any amended returns (1040X) as a paper return in order to be eligible for an extension.
Even if you file electronically, if you want to get your refund in the form of a physical check, you will have to wait a little longer.
As would cause your refund to be delayed in the same way that sending a refund to the incorrect bank account would cause it to be delayed.
Mistakes on Your Return
If you file an incomplete return, or if you make any mistakes on your tax return, the Internal Revenue Service will take longer to process your refund. Any possible reimbursement will be delayed as a result of this. Mistakes might include erroneous mathematical calculations or inaccurate personal data entry. With the help of a tax filing service, such as TurboTax, you can reduce the likelihood of mathematical mistakes on your tax return. The program will take care of the calculations for you.
- Consider the following scenario: you manually entered the information from your W-2.
- If there are any problems with your tax return, the IRS will notify you immediately.
- You may be able to avoid the hassle of having to file an updated return as a result of this.
- Consider the following scenario: you are filing a joint tax return with your spouse and you enter his or her Social Security number wrongly (SSN).
The remainder of the information on your return may be valid, but the IRS may not be able to verify it since the SSN of your spouse does not match the SSN on your return.
Incorrect Bank Info
The vast majority of taxpayers now get their refunds via direct deposit into their bank accounts. You should always double-check your account number and bank routing number after providing them. It is no one’s intention to lose out on a refund because it was sent to the incorrect bank account. If you made a mistake when entering your account information, there are a few options available. If you haven’t received your return from the IRS yet, you can request that they suspend the direct transfer.
- and 7 p.m.
- Alternatively, if the IRS has already delivered the payment, you will need to contact the banking institution to make arrangements.
- The Internal Revenue Service will subsequently give you a printed check for your refund.
- With Form 3911, you authorize the Internal Revenue Service to contact the financial institution on your behalf and seek to collect your refund.
- After the first trace is completed, banks have 90 days to reply to the Internal Revenue Service’s request for information.
- Your final option, if the bank does not reply, is to file a civil lawsuit against the financial institution and/or the owner of the account into which your return was placed.
You Have Outstanding Debt
The Internal Revenue Service (IRS) has the right to garnish your tax return if you owe certain types of obligations. Withholding your wages in order to use them for anything else is known as wage garnishment. The IRS will garnish your return for a variety of reasons, some of which are as follows:
- You owe money to the government for overdue taxes. It is possible that you have defaulted on a federal student loan. You owe money to the government for child support
- You and your spouse filed a joint tax return, and your spouse owes money.
In the event that the IRS withholds your refund, you will get a notification explaining why the IRS took this decision. If you believe you were not obligated to pay that obligation, you will need to file a dispute with the agency that received the money.
A notification outlining the reason for the garnishment will be issued if the IRS decides to take your refund. It is necessary to challenge the debt with the organization that received the money if you believe you were not obligated to pay the amount.
Tips for Making the Most of Your Refund
- Finding a quality financial advisor does not have to be a difficult endeavor. Your financial adviser links you with up to three other financial advisors in your region using SmartAsset’s free service, and you may interview your advisor matches at no cost to determine which one is the best fit for you. If you’re ready to locate a financial adviser who can assist you in achieving your financial objectives, get started right away. If you do not have any immediate bills to pay off, you may opt to deposit your refund directly into your bank account. Alternatively, you may hunt for a high-interest savings account. You may put your return toward retirement by obtaining the maximum interest rate available. Even if it doesn’t seem particularly enjoyable, it’s critical to guarantee that you can spend your golden years doing anything you like.
iStock/LPETTET, iStock/anyaberkut, and iStock/AntonioGuillem are credited with the images. Derek Silva, CEPF® (Certified Environmental Professional). Derrick Silva is on a mission to make personal finance more accessible to the general public. He contributes to SmartAsset by writing on a number of personal financial subjects and serving as a retirement and credit card specialist. A member of the Society for Advancing Business Editing and Writing, Derek also has the title of Certified Educator in Personal Finance® (CEPF®) and is an expert in personal finance.
Derek wants readers to take away from his work the following message: “Don’t forget that money is only a tool to help you achieve your objectives and live the lifestyle you choose.”
Taxpayer Advocate Warns Of Tax Refund Delays, IRS Buried In Paper
Are you still waiting for your tax refund from last year? It’s possible that you’re looking forward to this year’s as well. getty According to the National Taxpayer Advocate Erin Collins’ annual report to Congress, which was issued today, excessive delays in the processing of tax returns and tax refunds are the most critical concern confronting taxpayers. It was a difficult year last year, and it appears like it will be a difficult year this year as well. The Internal Revenue Service revealed this week that the filing start date for the 2022 tax season—the day on which you must file your 2021 tax return—will be Monday, January 24, 2019.
The taxpayer advocate also warns that refunds may be delayed throughout this tax season.
“Paper is the IRS’s Kryptonite, and the agency is still buried behind a mountain of it,” Collins explained.
In addition to long processing and refund delays, taxpayers experienced difficulty reaching the IRS by phone, correspondence that went unprocessed for months at a time, collection notices issued while taxpayer correspondence was awaiting processing, limited or no information on the Where’s My Refund?
- TAS received more than 66,000 congressional referrals last year, which was more than six times the number of questions received before to the epidemic.
- When it came to Recovery Rebate Credit claims by taxpayers who did not get stimulus money, the most prevalent inaccuracy (which affected 11 million returns) was found.
- Paper returns might take up to eight months to be processed, and there have been instances where updated returns took more than a year to be processed in some situations.
- The child tax credit payments are available to nearly everyone who has children—a total of 36 million taxpayers.
- File electronically and select direct deposit as your payment method.
- On December 23, 2021, the IRS still had 6 million unprocessed 2020 individual tax year returns, according to the most recent Covid operations figures, which were collected on January 7, 2019.
- According to the Taxpayer Advocate’s study, the IRS backlog has around 5 million pieces of taxpayer communication, with some of these submissions extending back at least to April and many taxpayers still waiting for their refunds nine months after they were originally submitted.
- Seventy-seven percent of those who applied for refunds were successful.
- Tax refund delays generate actual issues for people, and they have a disproportionately negative impact on low- and middle-income individuals.
Collins believes that the IRS “deserves credit for the way it dealt with the cards they were dealt.” The Internal Revenue Service (IRS) is in responsible of providing Covid assistance, which includes stimulus payments, advanced child tax credits, and the $10,200 unemployment benefits tax exemption.
Since fiscal year 2010, the IRS’ personnel has dropped by 17 percent, but its workload—as measured by the number of individual tax return filings—has climbed by 19 percent, according to the Bureau of Labor Statistics.
The Taxpayer Advocate urges Congress to increase funds for the Internal Revenue Service so that it may improve the taxpayer experience and update its information technology systems.
Further Reading: The Internal Revenue Service Announces the Start Date for the 2022 Tax Filing Season Do you have children? Keep an eye out for IRS Letter 6419 (Child Tax Credit). The Internal Revenue Service has announced that some 2020 unemployment tax refunds would be delayed until 2022.
IRS takes steps to avoid tax return processing delays as filing season starts
Those who got an Economic Impact Payment or a child tax credit payment in 2021 will be receiving letters from the Internal Revenue Service, which is attempting to avoid unnecessarily long processing times at the start of this year’s filing season. On Monday, IRS Commissioner Chuck Rettig told reporters that the vast majority of customers who file an error-free 2021 tax return online and select a direct deposit would get their refund within 21 days after filing the return. He went on to say that the IRS is employing a “all-hands-on-deck” strategy to clearing out its backlog of tax returns, with refunds being given top priority in this effort as well.
- We want them to be aware that we are doing all in our power to assist them.
- The Internal Revenue Service had a backlog of around 6 million unprocessed individual tax returns and 5 million pieces of taxpayer communication as of late December.
- “As you are aware, our phone lines are now clogged, and we predict that our phone lines will continue to be jammed for the foreseeable future.
- According to Rettig, the Internal Revenue Service has no plans to extend the current filing season beyond the current April 18 deadline.
- The Internal Revenue Service has not yet processed millions of pieces of mail.
- According to IRS records, the letter lists the payment amounts that the taxpayer has been reimbursed for.
Corbin went on to say that the IRS does not feel that these complaints are indicative of a “widespread issue.” “I would advise taxpayers to file their returns with the greatest accuracy feasible.” In addition, if they are looking at the letter and they express a belief that their totals are different, and they have deposits or other material demonstrating that this is the amount that I must disclose, they must do so,” he added.
- Corbin stated that the Internal Revenue Service urges taxpayers who have not yet received their 2020 tax returns to file their 2021 tax returns this year instead.
- “There will be instances in which consumers may want their 2021 refund before their 2020 tax returns can be filed.” They shouldn’t be concerned about it.
- Despite the issues the epidemic has posed to the IRS workforce, Rettig stated that the IRS is now more reliant on remote workers than it was during the pandemic’s early phases.
- The epidemic has forced the Internal Revenue Service to adapt to a new environment in which it must take some risks in order to fulfill its purpose, manage certain risks in order to distribute the stimulus payments — and to do so as quickly as possible, as required by law.
- Deputy Commissioner Corbin claimed the Internal Revenue Service has the largest number of customer service personnel ready to receive calls in its history and that the agency is able to handle more calls than it has in the past.
- The Internal Revenue Service got over 120 million calls last year, compared to an average of around 35 million calls in a typical year.
Corbin stated that the Internal Revenue Care will continue to hire during the filing season in order to increase the number of customer service professionals and “offer the sort of service that taxpayers expect.” “We understand that this is a frustrating situation, and we are doing all we can to continue working on it while simultaneously ensuring that the current tax season runs successfully,” he added.
The Internal Revenue Service (IRS) confronts increased pressures to update its customer experience, despite a dwindling staff and some of the oldest legacy IT systems in the federal government, aside from the threat of pandemic influenza.
The Build Back Better Act would have provided the agency with $80 billion over the next decade to considerably increase its workforce, with a particular emphasis on enhancing its enforcement activities.
The IRS’s Rettig has called on Congress to provide the required financing for a six-year information technology modernization project that has slipped behind schedule, as he previously warned legislators.
“Many of these issues are attributable to the epidemic, but they are also the result of years of underfunding by Congress.” “The agency does not have the resources it needs to provide effective service to taxpayers under regular circumstances, let alone during a pandemic,” Psaki stated.
Mark Warner (D-Va.) wrote to the IRS and the Treasury Department on Monday, inquiring how the agency plans to reduce its backlog of unprocessed 2020 tax returns now that the agency is accepting 2020 tax returns.