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.
- Even if you submit your returns electronically and request direct deposit, the IRS still takes additional time to process certain tax returns. The most common reasons for a delay include mistakes, incomplete returns, fraud or identity theft, or further review.
Why is my tax return still processing 2020?
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. 5
How long does your tax refund stay in processing?
About 90% of electronically filed tax returns are processed within 21 days. Paper returns are processed six to eight weeks after they arrive at the IRS. If you electronically file and provide bank account information to the IRS for direct deposit, you’ll see your refund the quickest.
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 is my tax return still not processed?
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.
How long can the IRS hold your refund for Review 2020?
How long can IRS legally hold refund? There is no statutory limit. However, after 45 days from the filing deadline they must pay interest on the refund, and after six months you can sue them in the Court of Claims.
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.
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.
Does being processed mean accepted?
It simply means that your e-filed return is being processed and that the government hasn’t approved it yet. The general timeline of e-filed returns is: Transmission > Receipt/Acceptance > Processing > Approval > Refund.
How do I know if my tax return was approved?
Find out if Your Tax Return Was Submitted
- Using the IRS Where’s My Refund tool.
- Viewing your IRS account information.
- Calling the IRS at 1-800-829-1040 (Wait times to speak to a representative may be long.)
- Looking for emails or status updates from your e-filing website or software.
Does being processed mean approved?
Refund has been processed means that they have approved and are ready to send you your refund. Your return being processed mean that your tax return is being processed. Your status should change from being processed to accepted and then a date given for your refund.
Why is my tax return 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.
Can I sue the IRS for holding my refund?
Generally, if you fully paid the tax and the IRS denies your tax refund claim, or if the IRS takes no action on the claim within six months, then you may file a refund suit. You can file a suit in a United States District Court or the United States Court of Federal Claims.
Why are federal tax refunds delayed?
Tens of millions of taxpayers experienced prolonged delays in the processing of their returns last year, as the IRS continued to work through challenges exacerbated by the Covid-19 pandemic, like staffing shortages and tax law changes.
2021 IRS Tax Refund Schedule: When Will I Get My Tax Refund?
Tax season is dreaded by many individuals. You may, on the other hand, have something to look forward to if you are anticipating a tax refund. The IRS may be able to help you pay off some debt, construct an emergency fund using a high-interest savings account, or work with an investment and retirement counselor to set investing and retirement objectives if you have additional money coming your way. However, depending on how you file your taxes and how you receive your return, it may take up to three weeks for the majority of individuals to receive their tax refund.
When Will I Get My Tax Refund?
The Where’s My Return? function, available on the IRS website and the IRS2Go mobile app, allows you to check the status of your refund online. If you file your tax return online, you will be able to check on the status of your refund within 24 hours of submitting it. While mailing your tax return will expedite the process, you will have to wait at least four weeks before receiving any information on your tax refund. Remember that you may normally submit your taxes in January if you plan beforehand.
If you inadvertently input the erroneous Social Security number, you may receive an IRS Error Code 9001.
The majority of people get their refunds within 21 days after filing their tax returns.
Depending on how quickly you seek a refund, you may have to wait several weeks for your check to arrive.
|Estimated Federal Tax Refund Schedule|
|Filing Method||E-File, Direct Deposit||Paper File, Direct Deposit||E-File, Check in Mail||Paper File, Check in Mail|
|Time from the day you file until you receive your refund||1-3 weeks||3 weeks||1 month||2 months|
Please keep in mind that these are only estimates. For the most part, depending on how you file, you should be able to anticipate to get your refund within these time frames. According to IRS statistics, filers typically get their refunds two weeks after their taxes have been accepted by the IRS for direct deposit and three weeks after e-filing for a paper check in the mail. What exactly is taking so long? If you have not received your refund within 21 days, it is possible that your tax return needs to be reviewed again.
If the Internal Revenue Service (IRS) need extra information in order to process your return, it may send you instructions by mail.
Tax returns filed by anyone who claimed those credits must be held by the Internal Revenue Service until February 15, according to the Protecting Americans from Tax Hikes (PATH) Act of 2015.
tool and claiming one of those tax benefits may result in a PATH Act notification appearing on your screen.
You should avoid contacting the IRS directly unless you were advised to do so by the Where’s My Refund? feature or it has been 21 days since you filed your tax return electronically–or six weeks since you sent your paper tax return–and you have not received your refund.
What About My State Tax Refund?
Until now, everything we’ve discussed has been about federal tax refunds. In terms of tax refunds, each state operates in a somewhat different manner. If you submitted your state tax return electronically, you should expect to get your refund within 30 days after filing your return. If you submitted a paper tax return, it might take up to 12 weeks for your refund to be processed and received. For further information on the status of your refund, you should contact your state tax office or visit the Department of Revenue website for your state.
When Are Taxes Due?
The deadline to file your tax return and pay your tax bill is usually April 15th of each year. However, because of a legal holiday in Washington, D.C., taxes for the year 2021 must be submitted by April 18, 2022. Residents of Massachusetts and Maine have until April 19, 2022, to file a lawsuit against the state. If you find yourself still unable to make the tax filing due for the upcoming year, you can request for a six-month extension of the deadline. However, the sooner you file your tax return, the sooner you will receive your tax refund.
It is essential that you complete your tax return as soon as possible, review it for errors before submitting it, and file your tax return electronically if you want to get your refund as promptly as possible. You can request a paper check, but if your return is transferred immediately into your checking account, savings account, or individual retirement plan, you will get it much more quickly (IRA). In case you’re concerned about the status of your tax return, don’t forget to utilize the IRS Where’s My Refund?
It gives you up-to-the-minute information on the progress of your return.
Tips for Maximizing Your Tax Savings
- 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. When it comes to paying your taxes, using a tax filing service may make the process much simpler. They may relieve you of a lot of the stress and uncertainty associated with the procedure, allowing you to complete a more accurate tax return. They can also assist you in discovering tax deductions or exemptions that you may not have been aware of on your own. Among the most popular software options are Tax preparation services such as TurboTax and H R Block
- If you discover that you are receiving substantial tax refunds on a frequent basis, it is possible that you are paying too much in taxes in the first place. If this is the case, you may wish to make adjustments to the withholding amounts on your W-4 so that you may retain more money over the whole year. Even if large returns are thrilling, why give the IRS a free loan?
Photography by Juan Monino, Baltic Boy, and Anya Berkut (iStock.com/Juanmonino), with permission. Lauren Perez, CEPF®, is a certified environmental professional. Lauren Perez writes for SmartAsset on a range of personal financial subjects, with a particular focus on savings, banking, and credit cards. She has a bachelor’s degree in English and a master’s degree in finance. Ms. McKinney holds the designation of Certified Educator in Personal Finance® (CEPF®) as well as membership in the Society for Advancement of Business Editing and Writing (SABEW).
Her hometown is Los Angeles, and she was born and raised there.
With the hours of study Lauren puts in at SmartAsset, she is able to give suggestions to friends and family about credit cards and retirement accounts that they could find beneficial.
Tax Refund Delay: What to Do and Who to Contact
It is possible that your tax refund will be delayed for a variety of reasons. It’s possible that your figures and those of your employer didn’t match. Alternatively, you may have mistakenly missed a line—or perhaps an entire form. Alternatively, it’s possible that you submitted a credit claim that the IRS is taking longer to review. This year, on the other hand, the most likely explanation for a delayed tax refund is that you filed a paper tax return instead. As a result of the COVID-19 outbreak, there was a further backlog of tax returns to deal with.
Of course, the reasons for a delayed tax refund that existed before to the coronavirus epidemic may still be relevant today.
Continue reading to learn more about the causes for the delays and how to avoid them in the future. Take the time to develop a complete financial strategy that goes beyond taxes and other financial obligations. Find a financial adviser in your area right now.
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.
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.
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.
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. The Internal Revenue Service begins providing refunds in February. 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
For the reasons stated above, paper returns are often processed more slowly by the Internal Revenue Service (IRS) than computerized forms. If you want your refund in the form of a check, you will have to wait even longer because of this. If you file a paper return by certified mail, the IRS will take longer to complete your return and release your refund. Speaking of paper returns, you will be required to file any amended returns (1040X) as a paper return under the Internal Revenue Code. For revised returns, the IRS predicts that it will take between eight and twelve weeks to process them.
A check sent by the mail has an increased chance of being misplaced, as well as the likelihood of being sent to the incorrect address.
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.
A bank, on the other hand, is not compelled to give information to the Internal Revenue Service. 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.
There are a variety of reasons why you could be experiencing a delay in receiving your tax return. Some of the explanations will not necessitate any more effort on your behalf. This is the case if you have claimed specific credits or if you have filed your tax return at specific periods. Filing a paper return and obtaining your refund in the form of a paper check will both drag down the process. Another explanation for the delay might be because you made a clerical error or missing information.
It is your responsibility to locate the money if you requested a direct deposit but gave inaccurate bank information to the financial institution.
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.”
Why Is It Taking So Long To Get My Tax Refund? IRS Processing Delays Continue Causing Direct Deposit & Payment Delays
When it comes to tax season, I receive a large number of reader queries, many of which are tinged with a sense of desperation, about why the IRS is taking so long to process tax returns and what can be done to ensure that refunds are received as soon as possible. This was no different during the most recent tax season, when a number of people expressed their dissatisfaction with the lengthy delays they were experiencing in the processing of their tax returns and the delivery of long-overdue refunds.
Furthermore, individuals who requested extensions will almost certainly have much lengthier delays in receiving any reimbursements that are due.
Tax returns that require special treatment or manual processing may take up to 120 days to be processed and taxpayers notified of any modifications or adjudications, according to the IRS, which has stated that staffing shortages may cause this to be the case.
Other reasons your refund may be delayed per the IRS
- Additional or random security checks may be performed – particularly if fraudulent actions have been related with your file in the recent past. Returns that have been amended require extra, manual processing, which can result in reimbursements being delayed for up to 16 weeks. Documentation or information in your return that is missing or incomplete (most online tax filing software checks for this, but manually filled forms are more at risk)
- Incorrect bank account numbers or bank account data supplied in your return (see below for instructions on how to address your return)
- The reason for this is that some people have reported that their refund has not been deposited after using a pre-paid card for the first time and using a middleman bank (SBBT, Republic, Bofi, etc.). This is because the middleman bank does not test deposits to ensure that the account is active and correct
- You submitted a claim on behalf of your spouse who was harmed
- Applications for an individual taxpayer identification number (ITIN) must be submitted with the refund claim (see Topic 857 for more information on this). A refund offset is a reduction in your payment owing to other federal or state responsibilities that you have. For further information, see the section below. In the event that you filed a Form 1042-S (PDF) and requested a refund of tax withheld by submitting a Form 1040NR (PDF), allow up to 6 months from the original due date of your 1040NR return or the date you actually submitted your 1040NR to get any refund due (see more details in tax topic152). Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) claims were made on your behalf (ACTC). Additionally, Congress will carry out additional identity verification checks and upgrade systems in order to allow claimants to use their 2019 tax year information in order to qualify for these benefits owing to a job or income loss in 2020.
Maintain constant contact with the IRS using its mobile apps (WMR and IRS2GO) to ensure that you get your refund payment on time. You can begin checking on the status of your refund within 24 hours of the IRS receiving your e-filed return, or within 4 weeks of mailing a paper return, whichever comes first. The WMR applications track the progress of your tax return via three stages: receipt of the return, approval of the refund, and dispatch of the refund. You may learn more about refunds by watching these two videos that explore the subject.
- When Can I Expect to Receive My Tax Refund? The IRS Refund Processing Schedule for 2021, as well as the Top 3 Reasons for Delays
- Timeline for IRS Refund Status WMR/IRS2GO bars that have vanished
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So what can you do if your tax refund is taking much longer to get than expected?
It is possible that your tax refund processing will take longer than expected due to a combination of two factors. If something is wrong with your tax return file, such as missing information, extra identity fraud/verification (details below), erroneous social security numbers, or information from linked sources (employer, ex-partner), it is likely that something is wrong with your tax return filing. Consider the case of the same dependant claimed in numerous tax forms. In order to try to figure out why your tax return is taking such a long time to arrive, here are a few things you may do.
- To find out the official status of your return, use the IRS tax tool, where’s my refund (WMR), or the IRS2Go smartphone application (see estimatedIRS refund schedule). It is updated once a day (overnight) and offers the most up-to-date information on the status of your tax refund. More than 90 percent of refunds are expected to be issued to taxpayers within 21 days, according to the Internal Revenue Service (IRS) (not business days). If you have filed all of your documentation, you should generally wait at least 21 days before taking any further serious measures to protect your legal rights. Furthermore, if you filed via paper, you may have to wait more than 6 weeks before receiving a response from the IRS.
Incomplete Tax Returns and Delayed Refunds
- Waiting Periods for Tax Status and Refunds
- What exactly do these IRS refund statuses indicate? Return Received indicates that the Internal Revenue Service has received your tax return and is processing or evaluating it. As soon as the IRS has completed processing your return and confirmed that your refund has been accepted, you will be able to view your projected refund date online. It usually just takes a few days for the status of a return to change from Return Received to Refund Approved if everything is in working order. However, if there are any problems with the return processing, things will be delayed, and a reimbursement date will not be offered until your refund has been processed. Depending on the circumstances, thefund tracker image (shown below) may not be displayed if your return is being examined before to reaching stage two: “Refund Approved,” and instead an explanation or instructions will be supplied by the IRS. If you previously clicked the box “Where Has My Refund Gone?” this may still occur. and it displayed the status “Return Received” beside the tracker information. If the Internal Revenue Service requires more information relevant to your return, they will notify you by letter (be aware of IRS imitation scams). As soon as possible, you should comply with the IRS letter’s recommendations in order to avoid future delays in getting your tax return.
- Examine your tax return to ensure that there are no obvious problems, such as missing names or Social Security numbers, or that you have forgotten to sign your tax form. According to the Internal Revenue Service, one of the most common reasons for consumers to face delays in receiving their refunds is because their returns are not correctly completed. So, in order to ensure that you receive a refund, make sure that your return is as exact as possible. To resubmit an updated tax return, include the modifications and a brief explanation of the reason for the amendment in the body of the tax return. You aren’t required to redo your full tax return, as well. Simply demonstrate the appropriate modifications and your tax liability will be adjusted accordingly. If you neglected to include tax forms such as W-2s or 1099 forms on your original tax return, you normally do not have to file an updated return. The IRS will generally submit a second request for those papers
- However, this is not always the case.
- Get online assistance from a variety of articles written by people who are experiencing refund delays. On one of my posts about the IRS return schedule, I received more than 6000 comments, many of which had important real-life advice that you won’t find anywhere else:
- If you claim certain credits on your tax return, such as the Earned Income Creditor Education Credits, the IRS has advised that the refunds generated by these forms may take longer to process (under PATH act). Consequently, even if you filed early, you should anticipate that your return would take longer – maybe until April.
- Engage the services of an accountant or tax services organization to follow up on this matter on your behalf, particularly if you owe money to the Internal Revenue Service. Please note that these are not the most inexpensive solutions, and if your return is less than $1,000, it may not be worthwhile to pursue them.
- Calling the Internal Revenue Service is a possibility, albeit getting through to someone can be difficult. You can get the most up-to-date IRS contact numbers and locations by visiting the IRS resources website. Here’s how to speak with a genuine IRS representative:
- Call 800-829-1040 — if they claim they have a high amount of calls, hang up
- Otherwise, keep calling until they don’t say high volume of calls. Follow this by pressing 1 for English and 2 for Spanish
- Then, after listening to the alternatives, pressing 2 then 1, then 4, then 2 again until it eventually asks for your social security number. After that, they will attempt to deceive you, but if you do not dial anything, you will be connected to an operator. If you don’t mention you have questions regarding your refund, you’ll be sent to the online form, which will take longer and be more difficult to complete. Make sure your cell phone is fully charged before calling because you may have to wait for up to an hour. We wish everyone the best of luck and hope that we all receive our refunds. After all, we worked hard for it! =)
- Ensure that your refund has been received by the intermediary bank (e.g., SBBT, Republic, Bofi, etc.) and has been transferred to your personal account. If you filed jointly, ensure sure both of your names are on your bank account/prepaid card, since failure to do so may result in your refund being delayed or refused.
IRS Operations Page
The IRS operations page, which provides information on key functions and causes behind some of the delays, can be visited to get the most up-to-date information on tax refund processing delays from the IRS. Phone support, paper filed returns, and ongoing reviews are all examples of services that are subject to delays.
Tax Payer Identify Verification Delaying IRS Tax Refund Processing and Direct Deposit Payments
It appears that the IRS is delaying refund processing in a number of recent instances because they are having to spend a significant amount of time authenticating tax payer identities as a result of the increase in online tax related fraud over the previous several years. The Internal Revenue Service will tell chosen tax filers through WMR or letter (they will never phone you) that they need to contact an IRS number in order to verify their identification. It might take up to 9 weeks for you to get a refund after your request has been verified.
Refund Offset – Why Your Refund May be less than expected
The fact that when people expect a refund, the amount they get is actually less than the amount they expected or the amount offered by their e-filing tool is another source of uncertainty for those who are anticipating a refund. The reason for this is that the federal government has “offset,” or withheld funds from your tax return, in order to satisfy obligations you owe to other federal departments and agencies. Federal payments, such as tax refunds, can be collected against by authorized authorities (for example, the IRS) before being released to you, according to federal law.
They will provide you with an opportunity to contest this collection, but you will be required to demonstrate that you were not subject to any federal duties. Please contact the Treasury Offset Program (TOP) at 800-304-3107 if you have any queries about the offset of your return.
When will I get my paper check if my Direct Deposit is delayed or rejected?
People have been known to modify their bank accounts after filing their tax returns, or to offer false account numbers while filing their returns. When the IRS is unable to transmit funds by direct deposit, they will issue a physical check in lieu of doing so. Although this will cause your return to be delayed, the IRS processing period for a paper check is just 2 days longer than the time for direct deposit. Paper checks are normally mailed out on Fridays, and you should get them within a week, usually the following Friday or earlier.
If I can order my IRS tax transcript does it mean I am getting my refund direct deposited soon?
This is a question that is frequently asked, and I have seen a few responses to it, which are presented below. Tracie is a young woman who lives in a little town in the United States. As long as you can obtain a copy of your tax return transcript, you will have your DD within two days. I hope this is of use to someone. Since the system has been fixed, may God bless you and may we all receive ours in a timely manner. Ashley is a young woman who lives in the United States. On the 19th, the application was filed and accepted.
- There is no information accessible in WMR.
- In another thread, someone mentioned that the Internal Revenue Service (IRS) executes mass approvals every Sunday and Wednesday.
- I’ve never had to wait quite this long before.
- The IRS has been in contact with me, and they have finally authorized the increase in my bar from 1 bar to 2 bars.
- Wishing everyone the best of luck Estella is a fictional character created by author Estella – I was able to order my transcripts the day before yesterday.
- As a loan application, transcripts must be accurate because they are used to verify eligibility.
- Today I received approval with a DDD of 02/10, which was received this morning.
- Additionally, transcripts are an official IRS document.
- This is one of the prevalent myths and misconceptions that are propagated on social media.
- Although I have seen a number of comments from folks stating that when the WMR site only offers limited information about the return, requesting a free IRS transcript appears to be an alternative method of determining the refund’s current status.
As a general rule, if you have the ability to request a transcript, this indicates that your refund is on its way and that the IRS has completed processing of your tax return. However, all of this is based on anecdotal evidence.
Tax Topic 151 vs 152 notice
In some cases, when you go onto theWMRwebsite or the IRS2Gomobile app, you may be directed to IRS Tax subject 151 or 152 in regard to your refund, which you should review. But what exactly do these phrases mean? If you are subject to Tax Topic 151, it simply indicates that you are receiving a tax offset (as described above), which may result in a smaller refund than you anticipated. You will receive a formal IRS letter/report describing the exact offset and modifications to your tax return, as well as information on how to appeal this action – however it is possible that you may experience a delay in receiving your refund as a result of this action.
This message confirms that you will receive your tax refund in accordance with IRS processing criteria (usually within 21 days) and that the methods of payment will be confirmed by the IRS (direct deposit, check).
My advice is to be patient, check into the measures outlined above, and contact a tax advocate or tax expert if you are unable to resolve your issue with the IRS.
WMR and IRS2GO Refund Status Error Codes
When you encounter an issue when using the WMR and IRS2Go tools, you will be presented with an error code and a brief summary. Sometimes the reason for the error may be determined by looking at the code (e.g., 1161 – Refund delayed, bankruptcy on account). However, in many circumstances, this will not be of use, and in those cases, you should consult the IRS Refund Error Code list for further information. You may also read the comments below to see if there are any other difficulties that others are experiencing.
Why is My Tax Refund Delayed?
For the vast majority of people, their tax refund will be the most important money they get throughout the year – and they will rely on it. The Internal Revenue Service understands how important your refund is to you. It takes pleasure in paying out the majority of refunds within 21 days of receiving the request. What happens, though, if your tax refund is delayed? ” Where has my refund gone?” is a question we are asked a lot here at H R Block. In addition, this essay will explain why you may be receiving a delayed tax refund.
- Sought a Recovery Rebate Credit, but the amount you claimed does not match the amount of credit that the IRS determines you are entitled to
- The use of the lookback rule in order to utilize your prior-year earned income in order to compute your Earned Income Tax Credit (EITC) or your Additional Child Tax Credit
If your return fits these requirements, the Internal Revenue Service will personally analyze it, and it may take an additional 90 to 120 days before you get your tax refund. The Internal Revenue Service recommends that you continue to visit theWhere’s My Refundsite for any changes. Additional information is available on the Internal Revenue Service’s website. The IRS and the United States Congress are concerned about the speed with which refunds are issued.
When the IRS sends refunds rapidly, there isn’t always enough time to double-check that the returns are correct. Furthermore, speeding this procedure increases the likelihood of return problems and incorrect reimbursements.
EITC/ACTC Tax Refunds Delayed Until Late February
That’s why, beginning with the 2017 tax season, Congress provided the Internal Revenue Service (IRS) greater powers to scrutinize returns. To be more specific, Congress:
- The deadline for employers to return Forms W-2, which reflect taxpayers’ salary and the amount of income tax withholding they paid, as well as Forms 1099, which disclose payments made to independent contractors, has been extended. Late refunds including the earned income credit (EIC) and/or the supplementary child tax credit must be received before the deadline of January 31. (ACTC). It is possible that the IRS will not be able to distribute these refunds before February 15, but the IRS has stated that you should receive your return by the first week of March.
With the implementation of both new standards, the Internal Revenue Service will have the information and time it requires to investigate more returns before providing refunds for the first time. The IRS, on the other hand, is not new to the practice of scrutinizing and delaying returns. In reality, various IRS compliance programs deduct or delay refunds for millions of taxpayers each year as a result of noncompliance with the law. Some of the reasons why your tax refund may be delayed include the following:
Reason1 – IRS Taking Your Refund
When the Internal Revenue Service issues refunds, it mostly takes or decreases (offsets) payments when taxpayers owe money to the government. The following are the two most prevalent scenarios:
You owe federal taxes, and you haven’t paid:
If the Internal Revenue Service uses your refund to pay back federal taxes you owe, you’ll find out about it a few weeks after you complete your tax return. You’ll receive IRS notice CP49, Overpayment Applied to Taxes Owed, informing you of this. For those who disagree with the IRS’s assessment of their debt, their sole recourse is to file an updated return to remedy the error or fight any additional taxes the IRS has assessed against them in error (like a tax bill from anauditor anunderreporting notice).
You owe other debts, and you haven’t paid:
In accordance with the Treasury Offset Program (TOP), the IRS may deduct or decrease your refund if you owe other forms of obligations, including non-tax debts, such as those listed below.
- Child support that is past due
- Payments to other federal agencies
- State taxes
- And unemployment compensation repayments
The Internal Revenue Service (IRS) is unable to address questions or resolve disputes about TOP debts. Taxpayers who have questions may contact TOP at (800) 304-3107. Spouses who are not responsible for the accident might get a portion of the reimbursement. If you filed jointly with your spouse and the IRS withdrew your whole refund to pay for your spouse’s debts, you may be able to recover your half of the refund if you file separately. Fill out Form 8379, Injured Spouse Allocation, to file a claim on behalf of your injured spouse.
Reason2 – IRS Holding Your Refund
In a variety of circumstances, the IRS may withhold your refund and require further information from you. This does not necessarily imply that you are being audited, but it may indicate that you are if you do not respond with all of the required information before the deadline. The following are six of the most prevalent instances in which the IRS might place a hold on your tax return:
You mailed in your return, and the IRS flagged a “math error”:
When taxpayers submit their returns electronically, the e-file procedure detects and rejects many of the mistakes that they make on their returns at the time of filing. If you mail your return instead of e-filing it, the Internal Revenue Service is more likely to discover an error after the fact, according to the IRS. The Internal Revenue Service refers to most of these blunders as “math errors,” although they are not confined to arithmetic errors. If your Social Security Number (SSN) or the information about your dependents does not match the information on file with the IRS, the IRS may be able to modify any relevant deductions or credits (like the deduction for your dependent, the EITC or the child and dependent care credit).
If the IRS makes a modification to your return, you’ll get a letter (often IRS notice CP21) informing you of the change and requiring you to fix the problem within 60 days.
If you fail to give sufficient explanation and facts, the IRS’s decision is conclusive. You would then need to revise your tax return and follow up with the IRS in order to receive your refund at that time.
The IRS suspects identity theft:
Identity theft filters used by the IRS can cause tax returns and tax refunds to be delayed until people prove their identities. If this occurs, you will often get IRS Letter 5071, in which you will be asked to authenticate your identification. If you want to verify your identity until the Internal Revenue Service (IRS) reinstates its online identity verification process, you can do so by providing the IRS Taxpayer Protection Program unit with information from your previous year’s return, your current-year return, as well as your current-year Forms W-2 and 1099.
The IRS is challenging tax credit(s) you claimed:
It is possible that the IRS will delay your refund and ask for additional information if it determines that you are not eligible to claim any of the following credits: Earned Income Tax Credit (EITC), American Opportunity Tax Credit (ACTC), advanced payments of the premium tax credit, or American Opportunity Tax Credit. Technically, this is a tax-related audit by the IRS. If the Internal Revenue Service contests your EITC claim, you’ll often get Letter CP75, in which the IRS will request documentation that you qualify for the EITC.
Discover how to deal with an IRS audit.
The IRS identified potential ACA health insurance issues:
It has only been a few years since the implementation of the Affordable Care Act’s requirement that taxpayers obtain health insurance coverage, as well as the launch of the health insurance marketplaces, through which taxpayers can purchase insurance and receive tax credits to help them afford premiums. From 2017 forward, the Internal Revenue Service began collecting millions of information statements pertaining to taxpayers’ health insurance coverage (Forms 1095-A, 10-B, and 10-C), as well as information about any tax credits they may have been eligible to receive.
If your return contains discrepancies or omits a reconciliation of the advance payments of the premium tax credit, the Internal Revenue Service (IRS) may contact you for additional information to process your return (Letter 12C), or it may initiate an audit to assess penalties for failing to maintain the minimum required insurance coverage.
You need to file an old return:
When the Internal Revenue Service pursues previous tax returns, the IRS has the authority to hold any refunds you may be entitled until the old return is filed.
The only method to resolve this situation and receive your refund is to file the overdue tax return. If you owe taxes on your previous year’s return, the Internal Revenue Service will deduct that amount from your current-year refund. Learn how to deal with past-due tax returns.
You’re under audit from an earlier year:
The Internal Revenue Service (IRS) has the authority to hold your tax refund until any audits are completed. A postal audit of your EITCor ACTC return from a previous year is the most prevalent instance of this occurring. The IRS will often send you Letter CP88, which states that your refund has been held until the IRS has completed the audit. If you provide the IRS with the needed information by the deadline, the IRS will normally complete the audit within six months and will be able to process your refund request.
Handling a Refund Delay – Do Your Research and Respond Right Away
The Internal Revenue Service (IRS) has the authority to withhold your tax refund until any audits are completed. A postal audit of your EITCor ACTC return from a previous year is the most likely instance of this happening. The IRS Letter CP88 will normally inform you that your refund has been suspended until the IRS completes the audit. In most cases, if you answer to the IRS’s request for information by the deadline, they will complete the audit within six months and issue you a refund.
Contact the IRS andresearch your IRS account.
When you have a better understanding of why the IRS delayed your tax refund and how to reply to the IRS, you should take action immediately to avoid more complications. Your H R Block tax professional may also assist you in determining the cause of a refund delay and can speak with the Internal Revenue Service on your behalf. Learn more about H R Block’s Tax AuditTax Notice Services by visiting their website.
Is Your Tax Refund Delayed? Here’s Why and What to Do About It.
In a typical year, the vast majority of taxpayers get their tax refunds within 21 days of completing their returns online. However, this is not an average year. As a result of COVID-19 sending employees home, the Internal Revenue Service already had a backlog of paper tax returns to process from the previous year. The start of this year’s tax-filing season was delayed from late January to Feb. 12 to give the IRS additional time to prepare for tax law changes resulting from the December 27 relief package.
Meanwhile, the Internal Revenue Service (IRS) was entrusted with disbursing the stimulus funds from the disaster relief bills.
“Aside from the usual tax season crunch, which they alleviated a little by extending the deadline to May 17, they had three different stimulus checks to distribute via debit cards or deposit into taxpayers’ bank accounts,” Carlisle says.
How Long Does It Take to Receive Your Refund?
If you file your return online and request a direct deposit into your bank account, you should get your refund within 21 days, assuming there are no problems with your return. If you file electronically but want a physical check, you should expect to get your refund within a month. If you submit a paper return and request a paper check, the time frame might increase dramatically – by as much as two months or more.
Depending on whether you made any mistakes on your return, if the income you reported does not line up with the W-2s or 1099s the IRS received on your behalf, or whether your return has been affected by recent tax law changes, the procedure may take longer.
How to Check the Status of Your Refund
You should expect to get your refund within 21 days if you file online and request a direct transfer into your bank account. If your return is error-free, you should receive your refund sooner. For those who file electronically but prefer a paper check, the refund process normally takes around one month. If you file a paper return and request a paper check, the time frame might increase dramatically — to two months or longer. If there are errors on your return, if the income you reported does not match up with the W-2s or 1099s that the IRS received on your behalf, or if your return has been affected by recent tax law changes, the procedure may take longer than expected.
Why Is Your Refund Delayed?
In a regular year, there are a variety of reasons why your refund may be delayed, as well as some unique reasons for 2020 returns. In certain circumstances, you will just receive the funds later than anticipated. In some cases, the IRS may send you a letter requesting more information before it can complete processing your return and issue your refund. Remember that the IRS will never contact you if there is a problem with your return – that is almost always a scam – but will instead send you a letter if there is a problem.
When you’ve determined that the letter is legitimate, you should absolutely react in the way required in the letter, according to Kathy Pickering, chief tax officer at H R Block.
Some of the reasons why your refund may be delayed include the following factors:
Errors on Your Return
Having arithmetic problems on your return, forgetting to sign or provide your Social Security number, or any of these things might cause your refund to be held up. It may also be delayed if the information about your dependents does not match the information on file with the IRS, or if you fail to provide a comparable schedule or form to substantiate a deduction or credit, according to Pickering. Because of minor math problems, the IRS may choose to remedy the error rather than notify the taxpayer of the change.
Reported Income Doesn’t Match IRS Records
When you receive W-2s or 1099s that reflect income, the Internal Revenue Service receives copies as well. If the numbers you provide and the information the IRS gets do not line up, your return may be delayed while the IRS attempts to resolve the disparity between the two sources of information. In the event that information on your tax return does not correspond to information in the IRS databases, your tax return will be routed to the error resolution channel, according to Mark Steber, chief tax information officer for Jackson Hewitt Tax Service.
Keep track of all of your money when you complete your tax return, especially if you have many side hustles to keep you afloat.
Direct Deposit Accounts Don’t Match Up
If you choose direct deposit but the ownership of the bank account does not match the filing status on the return – for example, if you have the refund deposited into an account for one spouse when the return was filed jointly – your refund may be delayed, according to Barbara Weltman, author of J.K. Lasser’s 1001 DeductionsTax Breaks 2021 and a tax professional. This may cause the refund to be delayed and the IRS to send a paper check in lieu of a refund.
The IRS Suspects Identity Theft or Fraud
“The Internal Revenue Service’s identity theft filters can cause returns and tax payments to be delayed until people prove their identities,” adds Pickering. You will most likely be required to supply the IRS Taxpayer Protection Program unit with information from last year’s return, your current year return, as well as information from current year Forms W-2 and 1099.
The Recovery Rebate Credit Doesn’t Match
Pickering explains that the IRS’s identity theft filters might cause tax returns and refunds to be held up until people authenticate their identity. You will most likely be required to supply the IRS Taxpayer Protection Program unit with information from last year’s return, your current year return, as well as information from current year Forms W-2 and 1099. ”
Double Dipping on Dependents
Several young adults, citing the ease with which tax-filing software is used, submitted their own tax returns and did not coordinate with their parents’ forms, according to Carlisle. The fact that “many students learned they could do their own taxes online themselves” led to their claiming their own exemption, according to her. You can’t do both if their parents have taken them in as dependents as well. “As a result, reimbursements have been suspended until the problem is resolved, and someone will have to file an updated return,” she explains.
You Need to File an Old Return
As Pickering explains, “When the Internal Revenue Service seeks back tax returns, the IRS has the authority to hold any refunds you may be entitled to until you file the old return.” “The only way to resolve this situation and receive your refund is to file the overdue tax return. If you owe taxes on your previous year’s return, the Internal Revenue Service will deduct that amount from your current year’s refund.”
You Mailed Your Return
As Pickering explains, “When the Internal Revenue Service pursues back tax returns, the IRS has the authority to hold any refunds you may be entitled to until you file the previous return.” “This problem can only be resolved by filing the past-due tax return and obtaining a reimbursement for it. Taxes due on your previous year’s return will be deducted from your current-year refund by the Internal Revenue Service (IRS).”
You Received Unemployment Benefits
When the relief law passed on March 11, 2021, it exempted up to $10,200 in unemployment benefits from taxation for the year 2020. Many taxpayers had already filed their returns at that point. As an alternative to requesting that these early filers revise their returns, the IRS indicated that they will recalculate the refunds for those who were affected by the change. In Pickering’s opinion, “these taxpayers will very certainly get a refund in addition to any refund owed on a previously filed return.” “These will begin to be distributed in May and will continue throughout the summer.
The Internal Revenue Service will begin with single taxpayers who had straightforward filing arrangements and were not subject to unemployment insurance taxes, and then move on to married filing jointly filers and taxpayers with more complicated filing situations.”