New Report Critical Of Irs Progress
The accumulation of paper returns has been a troublesome development since the COVID-19 pandemic shutdowns shook up the system. While some progress has been made, it’s not enough to get the job done.
Fortunately for most taxpayers, e-filed returns have generated refunds quickly. About 137 million returns filed in 2022 were filed electronically.
About 8 million federal returns filed by paper were mailed to the IRS so far this year. More will arrive as some taxpayers who requested extensions also will file by paper. The IRS maintains that its critical for those who still need to file a tax return this year to file electronically, if possible.
The IRS has said it is aiming to crush the backlogged inventory this year, and I hope it succeeds, wrote National Taxpayer Advocate Erin M. Collins in midyear report to Congress, which was released Wednesday.
Unfortunately, at this point the backlog is still crushing the IRS, its employees, and most importantly, taxpayers, Collins said.
The IRS had a backlog of 21.3 million unprocessed paper tax returns by the end of May, an increase of 1.3 million over the same time last year, according to the report issued Wednesday by the National Taxpayer Advocate. That backlog includes amended paper returns.
Collins noted that processing delays are creating “unprecedented financial difficulties for millions of taxpayers and outright hardships for many.
Amending Your Tax Return
If you need to make changes to your tax return after you’ve filed, you’ll need to prepare an amended return. Beginning with 2019 tax returns, the IRS began accepting e-filed amended returns as long as the original return was e-filed. Prior year amended returns are ineligible for e-filing and must be mailed to the IRS. Processing for an amendment can take an estimated eight to 12 weeks or more from the date the IRS receives the return.
Amending won’t affect your original refund, of course. You might want to wait to amend a return with minor errors until you’ve received the original refund, cautions Holland. “Often the IRS system catches small transposition or mathematical errors when a return is processed, and adjusts the refund amount prior to sending it out.”
Remember, with TurboTax, we’ll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.
Why Was My Refund Mailed Instead Of Being Deposited In My Bank Account
There are a couple of reasons that your refund would be mailed to you. Your money can only be electronically deposited into a bank account with your name, your spouse’s name or a joint account. If your bank rejected the deposit for some reason, it may be the next best way to get your refund.
In addition, the IRS can only direct deposit up to three refunds to one account, so if you are getting multiple refund checks they will have to be mailed. If you’re receiving a refund check in the mail, learn how to track it from the IRS to your mailbox.
It’s important to note that direct deposit isn’t always automatic for refunds. To be certain, sign in to your IRS account to check that the agency has your correct banking information.
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Delayed 2021 Tax Refunds
At the beginning of each year, millions of Americans spur into action to file their taxes many fueled by fear of owing the IRS money or, more likely, motivated by receiving a tax refund.
As hard as it is to believe, at least 10% of Americans are still waiting for their 2021 tax refunds or an audit correspondence from the IRS. Even harder to believe that out of this portion of people, their delayed 2021 tax refunds sat at a standstill, taking 6-10 months before reaching an IRS agent for processing.
The IRS explains this is due to the already existing backlog of paper returns from 2020, which IRS agents must process by hand. This backlog has been slowed and grown due to tax changes made in response to COVID-19 stimulus legislation and other errors seen with manually filing tax returns. Not only is the IRS struggling to get caught up with a previous years backlog, but they are also suffering the pain of the nationwide labor shortage, which means fewer agents to process incoming returns awaiting processes.
Checking Your Refund Status
You can start checking on the status of your refund within:
- 24 hours after e-filing a tax year 2021 return
- 3 or 4 days after e-filing a tax year 2019 or 2020 return
- If you filed on paper, it could take 6 months or more
Have your 2021 tax return handy so you can provide your taxpayer identification number, your filing status, and the exact whole dollar amount of your refund shown on your return.
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Taxpayers Face Unprecedented Delays Getting Their Refunds Irs Watchdog Says
The Internal Revenue Service is facing an even bigger backlog for this tax season than it did a year ago, with delays creating “unprecedented financial difficulties” for taxpayers, according to a report released Wednesday.
The National Taxpayer Advocate, an independent watchdog within the agency, found that delays in processing paper returns have been running six months to one year, and taxpayers are experiencing longer wait times on the telephone.
The report on taxpayer challenges, which must be submitted twice a year to Congress, comes one day after IRS announced that it is on track to eliminate its 2021 backlog of tax returns this week.
The Objectives Report to Congress contains proposals for lawmakers to consider going forward.
“At the end of May, the IRS had a larger backlog of paper tax returns than it did a year ago, and its pace of processing paper tax returns was slowing,” National Taxpayer Advocate Erin Collins wrote in the report.
“That the backlog continues to grow is deeply concerning, primarily because millions of taxpayers have been waiting six months or more to receive their refunds,” Collins added.
How Can I Track My Refund Using The Where’s My Refund Tool
To use the IRS tracker tools, you’ll need to provide your Social Security number or Individual Taxpayer Identification Number your filing status and your refund amount in whole dollars, which you can find on your tax return. Make sure it’s been at least 24 hours before you start tracking your refund, or up to four weeks if you mailed your return.
Go to the Get Refund Status page on the IRS website and enter your personal data, then press Submit. You should be taken to a page that shows your refund status. If not, you may be asked to verify your personal tax data and try again. If all the information looks correct, you’ll need to enter the date you filed your taxes, along with whether you filed electronically or on paper.
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Your Return Needs Further Review
As mentioned above, if you see a message saying that your tax return needs further review by the IRS, you can expect your refund to arrive later than the average three weeks. For instance, if you receive a CP07 Notice, it means the IRS has received your tax return and is holding your refund until it completes a more thorough review. You might get this notice if you’re claiming treaty benefits or deductions on the Schedule A section of your taxes.
If the agency finds no issues, your refund could arrive within six to 12 weeks, assuming no taxes are owed. If the IRS does find issues with your return, it’ll send you a notice with instructions on what to do within that same period. That means you’ll get your refund months later than you anticipated.
When You’ll Receive Your Payment
Direct deposit MCTR payments for Californians who received Golden State Stimulus I or II are expected to be issued to bank accounts from October 7, 2022 through October 25, 2022, with the remaining direct deposits occurring between October 28, 2022 and November 14, 2022. We expect about 90% of direct deposits will be issued in October 2022.
MCTR debit cards are expected to be mailed between October 25, 2022 and December 10, 2022 for Californians who received GSS I and II, with the remaining MCTR debit cards mailed by January 15, 2023.
We expect about 95% of all MCTR payments â direct deposit and debit cards combined â to be issued by the end of this year.
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Why Do I See A Tax Topic 151 Tax Topic 152 Or Irs Error Message
Although the Where’s My Refund tool typically shows a status of Received, Approved or Sent, there are a variety of other messages some users may see.
One of the most common is Tax Topic 152, indicating you’re likely getting a refund but it hasn’t been approved or sent yet. The notice simply links out to an informational topic page on the IRS FAQ website explaining the types and timing of tax refunds.
The delay could be an automated message for taxpayers claiming the child tax credit or earned income tax credit sent because of additional fraud protection steps.
Tax Topic 151 means your tax return is now under review by the IRS. The agency either needs to verify certain credits or dependents, or it has determined that your tax refund will be reduced to pay money that it believes you owe. You’ll need to wait about four weeks to receive a notice from the IRS explaining what you need to do to resolve the status.
There are other IRS refund codes that a small percentage of tax filers receive, indicating freezes, math errors on tax returns or undelivered checks. The College Investor offers a list of IRS refund reference codes and errors and their meaning.
My Refund Check Is Now Six Months Old Will The Bank Still Cash The Check
A check from the NC Department of Revenue is valid up to six months after the date on the check. If a check date is older than six months, you should mail a letter along with the refund check to NC Department of Revenue, Attn: Customer Service, P O Box 1168, Raleigh, NC 27602-1168. Your check will be re-validated and re-mailed to you.
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Online Or Mobile Device
Where’s My Refund? has the most up to date information available about your refund. Use it to get your personalized refund status. The tool is updated once a day, so you don’t need to check more often. You can also download our free mobile app, IRS2Go, from an iPhone or Android device to check Where’s My Refund?
Why Do I See Irs Treas 310 In My Bank Statement
If you receive your tax refund by direct deposit, you may see IRS TREAS 310 listed in the transaction. The 310 code simply identifies the transaction as a refund from a filed tax return in the form of electronic payment. You may also see TAX REF in the description field for a refund.
If you see a 449 instead of 310, it means your refund has been offset for delinquent debt.
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How To Pay Bills While You Wait For Your Tax Refund
Because tax refunds can be delayed for a number of reasons, the IRS cautions taxpayers not to rely on receiving their tax refund within three weeks in order to cover expenses or make an important purchase.
Here are some ideas for getting by while you wait for your refund check.
Why Do I See A Tax Topic 152 Tax Topic 151 Or Irs Error Message
Although most of the IRS wheres My Refund Tool will so generally show that one of the three main statutesreceived, approved, or sent for your refund, some users will see such a wide variety of messages and notices.
One of the most common is the Tax Topic 152, a very generic message indicating that you are most likely getting a suitable refund, but it has not been improved or sent yet. Instead, the notice will simply link out to an informational topic page on the IRS FAQ website explaining the types and the timing of the tax refunds.
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Don’t Let Things Go Too Long
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 . But that wont fast-track your refund, according to the IRS. “Where’s my refund” will undoubtedly be a concern, but the thing to worry about here is refund theft. It isn’t corrected quickly, so you may be in for an even longer wait.
How Long Does It Take For The Irs To Send Tax Refunds
The IRS usually issues tax refunds within the three weeks, but some taxpayers could have to wait for a while longer to receive their own payments. In addition, if there are any errors in your tax return, the wait could be much longer.
When an issue may delay your return, its resolution will depend on how quickly and accurately you will respond and the ability of the IRS staff trained and working under the social distancing requirements to always complete the processing of your own return, which is according to the IRS website.
The date you will always receive your tax refund also depends on the method you should have used to file your return. Your tax refund will go into the bank account via direct deposit. It could easily take five days for your bank to put your money into your account.
If it takes the IRS the full 21 days to issue your own check and your own bank five days to deposit it, you could be waiting around 26 days to get your tax refund. However, most online services like the Cash App and the Venmo can quickly deliver your tax refund a few days sooner because there is no waiting period for the direct deposit.
If you have submitted a tax return by mail, the IRS will say it could take around six to eight weeks for your tax refund to arrive once it has been processed.
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Can I Call The Irs To Get Answers
While you could try calling the IRS to check your status, the agency’s live phone assistance is extremely limited.
The IRS is directing taxpayers to the Let Us Help You page on its website and to get in-person help at Taxpayer Assistance Centers around the country. You can contact your local IRS office or call to make an appointment: 844-545-5640. You can also contact the Taxpayer Advocate Service if you’re eligible for assistance by calling: 877-777-4778.
Though the chances of getting live assistance are slim, the IRS says you should only call the agency directly if it’s been 21 days or more since you filed your taxes online, or if the Where’s My Refund tool tells you to. You can call 800-829-1040 or 800-829-8374 during regular business hours. If you have not received a refund yet, you shouldn’t file a second tax return.
Can Get I More Of The Child Tax Credit In A Lump Sum When I File My 2021 Taxes Instead Of Getting Half Of It In Advance Monthly Payments
Yes, you can opt out of monthly payments for any reason. To opt-out of the monthly payments, or unenroll, you can go to the IRS Child Tax Credit Update Portal. If you do choose not to receive any more monthly payments, youll get any remaining Child Tax Credit as a lump sum next year when you file your tax return.
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Taxpayers Faced Different Challenges
Many people did not face delays. More than 85% of individual taxpayers e-filed their federal income tax returns, according to the new report, and they either received the refunds they claimed or paid what they owed without any problems.
Even so, the tax season wasn’t a walk in the park for many. On April 18, the Taxpayer Advocate noted, a significant spike in IRS web traffic caused a temporary disruption in taxpayers ability to access the “Make a Payment” feature in the Online Account.
“While the IRS resolved the issue the same day, it affected 891,000 individuals and added a level of anxiety for those taxpayers on an already stressful day,” Collins wrote.
In addition, Collins wrote, millions of e-filed returns were suspended during processing due to discrepancies between amounts claimed on the returns for the recovery rebate credit and amounts reflected in the IRSs records.
On June 3, the report noted, the IRS updated its website to inform taxpayers that due to extenuating circumstances caused by the pandemic, its identity theft inventories have increased. On average, it is taking about 360 days to resolve identity theft cases.
The most serious hardships, one might argue, are being created by those extraordinarily long delays for receiving a tax refund.
Typically, the IRS doesn’t start a tax season with such sizable paperwork hangover.