IRS Tax Delays

[jazcoburn]

Hello Everyone,

I wanted to provide some information for those who have been waiting on this years tax refund and have been unable to contact the IRS. 

I was able to get ahold of the IRS and speak to a live person. They stated my return was in the errors department due to an issue with line 30 on my tax return. Line 30 is the Recovery Rebate Credit line. TurboTax automatically calculated this amount based on the number of dependents entered. Due to this, they calculated the wrong amount on my return. I had a child in June of 2020 and TurboTax automatically calculated my rebate amount for him to include all stimulus payments from last year- which was incorrect because he was not born and alive for the first stimulus. 

The IRS stated that they will correct this error on their own and I should receive my refund within ten weeks of the date it was accepted. It is approaching week ten this Friday. They said there could be an additional delay as well because they have millions of returns to continue processing. 

If you claimed a Recovery Rebate Credit this may be the same issue you are having with your return/refund as well. Sit tight- it may be a while. 

[CatinaT1]

According to this IRS update as of April 16th:  

The IRS is now opening mail within normal timeframes. The IRS has also made significant progress in processing prior year returns. As of April 9, 2021, we had 1.5 million individual tax returns received prior to 2021 in the processing pipeline. Including current year returns, as of April 9, 2021, we had 16.2 million unprocessed individual returns in the pipeline. Unprocessed returns include those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Advance Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund. If, as a result, a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.  

How long you may have to wait: The IRS understands the importance of timely processing of tax returns and refund issuance. We are processing returns received over the summer and fall in 2020 due to the extended July 15, 2020 tax filing due date. While the majority of 2019 refund returns have been processed, in some cases, we are processing tax returns that were mailed with a payment even though payment associated with these returns have been processed by the IRS. However, we are rerouting tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available, and we are taking other actions to minimize any delays. Tax returns are opened in the order received. As the return is processed, it may be delayed because it has a mistake including errors concerning the Recovery Rebate Credit, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify that it was you who sent the tax return, we will write you a letter. The resolution of these issues depends on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return.  

What you should do: If you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. If you filed on paper, check Where’s my refund? If it tells you we have received your return or are processing or reviewing it, we are processing your return, but it may be under review. We’re working hard to get through the backlog. Please don’t file a second tax return or contact the IRS about the status of your return.  

E-filing your 2020 tax return: To e-file you will need to enter your AGI from your tax year 2019 tax return.  If your 2019 return has not yet been processed, you may enter $ 0 (zero) as your prior year Adjusted Gross Income. If you used the Non-Filers: Enter Payment Info Here tool last year to register for an Economic Impact Payment, enter “$1” as your prior year AGI. See Claiming the Recovery Rebate Credit if you aren’t required to file a tax return.  

[aarvish]

Filed paper return early February. No refund yet. Can't find IRS phone number. May be issue with amount of stimulus as others have experienced. But IRS doesn't appear to have received when answering SSN, filing status and refund amount. Way too long!

[CatinaT1]

According to this IRS update as of April 16th:  

The IRS is now opening mail within normal timeframes. The IRS has also made significant progress in processing prior year returns. As of April 9, 2021, we had 1.5 million individual tax returns received prior to 2021 in the processing pipeline. Including current year returns, as of April 9, 2021, we had 16.2 million unprocessed individual returns in the pipeline. Unprocessed returns include those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Advance Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund. If, as a result, a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.  

How long you may have to wait: The IRS understands the importance of timely processing of tax returns and refund issuance. We are processing returns received over the summer and fall in 2020 due to the extended July 15, 2020 tax filing due date. While the majority of 2019 refund returns have been processed, in some cases, we are processing tax returns that were mailed with a payment even though payment associated with these returns have been processed by the IRS. However, we are rerouting tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available, and we are taking other actions to minimize any delays. Tax returns are opened in the order received. As the return is processed, it may be delayed because it has a mistake including errors concerning the Recovery Rebate Credit, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify that it was you who sent the tax return, we will write you a letter. The resolution of these issues depends on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return.  

What you should do: If you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. If you filed on paper, check Where’s my refund? If it tells you we have received your return or are processing or reviewing it, we are processing your return, but it may be under review. We’re working hard to get through the backlog. Please don’t file a second tax return or contact the IRS about the status of your return.  

E-filing your 2020 tax return: To e-file you will need to enter your AGI from your tax year 2019 tax return.  If your 2019 return has not yet been processed, you may enter $ 0 (zero) as your prior year Adjusted Gross Income. If you used the Non-Filers: Enter Payment Info Here tool last year to register for an Economic Impact Payment, enter “$1” as your prior year AGI. See Claiming the Recovery Rebate Credit if you aren’t required to file a tax return.  

[boa6302jg]

You have received a vehicle allowance from your employer and it was included in your W2.  Can you add all of your vehicle expenses, reduce the amount by your personal use and the allowance received from your employer and use the balance as vehicle expenses? I asked this question earlier but when the solution came I accidently deleted it before I read it  Sorry!!!

[rodlingo-aol-com]

Same issue. Mailed my return on March 8th. IRS web site just continues to state they have no information. So I really don't know if the return has even been received. Have have tried all manner of phone calls and web sites to no avail. Very frustrating.

[VolvoGirl]

@rodlingo-aol-com   

You can double check your efile status here,
https://turbotax.intuit.com/tax-tools/efile-status-lookup

When you efile you get back 2 emails. The first email only confirms the transmission. The second email says if the IRS (or state) Accepted or Rejected your efile.

When you log into your account you should also see the status and if it was Accepted or Rejected, Started, Printed, Ready to Mail, etc. What does it say?

Turbo Tax only gives you an estimated date. The IRS usually pays most refunds within 21 days. But these are not normal times. This year is taking the IRS longer to send the refunds. There are millions more people filing returns to get the Stimulus payment.

Only the IRS can tell you. If your return was Accepted then check IRS Where's my refund
https://www.irs.gov/refunds/

When will you get your refund?
https://ttlc.intuit.com/community/refund-status/help/when-will-i-get-my-irs-tax-refund/01/25589

IRS - Questions about Refunds
https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions

[DaveF1006]

@boa6302jg  Unfortunately, you cannot deduct employee business expenses for your vehicle any longer because of the TCJA Tax Cuts Jobs Act 2017. This is normally where you would report your vehicle expenses to offset your income from your vehicle allowance. 

However, Alabama, Arkansas, California, Hawaii, Minnesota, New York and Pennsylvania all provide a deduction for unreimbursed employee business expenses on their respective state income tax returns. If you are a resident of these states, you may get some relief.

If you live in these states, you will enter these in federal>deductions and credits>employment expenses>job related expenses. Once you enter the vehicle expenses in the federal return, the information will populate in the state return if you are a resident of the states I already mentioned.