When to Expect Deferred IRS Refunds
Because of the accumulation of tax returns on the IRS, millions of Americans experience weekly tax refund delays that far exceed the typical processing time of three weeks. The IRS has acknowledged the delay , but why is it taking so long and when can you expect a refund?
Delays can be up to 10 weeks.
Although the IRS says it processes about 90% of tax returns within three weeks, up to 29 million returns have been marked for manual processing, which has so far resulted in delays of up to ten weeks from filing tax returns. the season began on February 12 (IRS assistants apparently also suggested this schedule when contacted by phone).
The understaffed IRS is dealing with an unusually large accumulation of 2020 tax returns that require manual processing due to pandemic legislation, incentive checks, and changes to complex tax credits in the middle of the 2020 tax season, according to the Taxpayer Advocacy Service . Returns flagged for manual processing include those that:
- Apply for an Earned Income Tax Credit or Additional Child Tax Credit
- Potential Identity Theft or Fraud Issues
- Tax returns requiring a reimbursement-related adjustment (in other words, your incentive payment)
Unfortunately, delays occurred without prior notice, which prevents tax authorities from knowing exactly when they should expect refunds (a recent Lending Tree study shows that 75% of 2019 tax declarants were eligible for refunds an average of $ 3,660).
How to track the status of your tax return
You can check the refund status using the tool IRS « Where’s my refund?” On the IRS.gov website or using the IRS2GO app on your smartphone. However, these tools are limited as they only tell you that a return has been received, approved, or shipped. Many claimants will be stuck with received status, which does not provide additional information on when the refund will be issued. That said, however, these tools are the best way to check if your refund has been shipped (it only updates once a day, usually at night, so you don’t need to check it more often).
You can also try calling the IRS at 1-800-829-1040 (this Lifehacker post shows you how to navigate their menus and talk to a real person), but IRS assistants won’t be able to give you an ETA beyond what can be found on their online -instruments, in addition to indicating that delays can be up to 10 weeks.
The IRS, an independent agency within the IRS that protects the interests of tax filers, has asked the IRS for more specific information on refunds that go beyond “in process” status. It is unclear when or if this will happen, or when the IRS backlog will begin to clear up. In the meantime, unfortunately, you are in a wait-and-see situation.