Tax Refund Delayed Due to Systematic Error

[Winnie132]

I filed my tax return on February 23rd. I called to follow up on the status of my return because online it just says that it is in process. The representative that I spoke with told me that there was a systematic error when my return was filed and that I could expect to see my refund in approximately 10 weeks after the date I e-filed. Has any one else had this issue before? If so did it take the full 10 weeks to get your refund?

[SweetieJean]

Did you file for a Recovery Rebate Credit?  The IRS is validating all of those, and this takes extra time.   Also see:

Why is my tax refund taking so long? The IRS may not tell you, but this report offers clues (msn.com...

What led to IRS backlog: ‘Thin workforce,’ new pandemic relief programs | Federal News Network

[mep8776]

I filed mine on Feb, 17, 2020 and am still waiting. Gov., site says "still Processing"?

[Matt2020]

Same here. Still waiting. IRS site says “processing”.  I think they are just overwhelmed.

[WhitneyCuriel]

I’m in the exact same boat. I filled 2/27 it is 6 weeks today. When I called they told me I was in a systematic error and there is nothing that I not the customers service team could do and I just have to have “faith” it will work itself out in the 10 week time frame (May 1st). This is bs. They haven’t even took a look at my return after 6 weeks so my faith of 10 weeks is not really there. They also say a return is longer with the EIC and Child Credit which I have both and the unemployment. So how long will it really be?

[afrey91]

My taxes were filed and accepted the same day tax season opened which was like feb 12 th? Anyways after a few days my bars all went away on the where’s my refund app and it said your return is being processed and they would let me know when a refund date would be provided, tax topic 152 but I didn’t think anything of it. Finally after the 21 days came and went I got through to the irs and they said my return was still processing and to give it 10 weeks!! They could not tell me why or any explanation of what was going on other than if they needed anything from me they would mail me something. I called the irs last week at 9 weeks into this mess and they said I would either see my money in my account or a enter in the mail. Today’s exactly 10 weeks and guess what? Nothing! I called again today and that’s when they finally told me that turbo tax didn’t do their numbers right when doing my return and all sorts of messed up my rebate credit. I received my rebate credit for myself but I was married over the summer and my husband did not receive any of the stimulus checks. Apparently turbo tax miscalculated and the irs owes us more money. The irs said today that my return is now in systematic errors department and that it was nothing we did at all. The irs said that supposedly being in this department is a good sign and that I should now see a change on the where’s my refund website in a couple days and it will provide me a deposit date. Anyone else have anything like this happen?? Hope this helps someone!!

[CatinaT1]

According to this IRS update as of April 23rd:   

The IRS is now opening mail within normal timeframes. The IRS has also made significant progress in processing prior year returns. As of April 16, 2021, we had 1.5 million individual tax returns received prior to 2021 in the processing pipeline. Including current year returns, as of April 16, 2021, we had 16.1 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 Additional 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.  

[NakiaC4884]

Me too, I'm upset because why doesn't TurboTax have a mechanism that checks these "errors," before they let you file??

[Critter-3]

@afrey91 

The IRS sent all the "recovery rebate credit" returns to  a holding department until they figured  out how they were going to process them.  ALL returns with an amount more than zero on line 30 of the return are being sent that way to be processed by humans which are in short supply right now and will take much longer than the norm. This is nothing you or the TT program necessarily did wrong so all you can do is wait until your return gets processed.  This short staffed department also has to review anyone who used the prior year AGI to get the current year EIC and/or CTC  so they are backed up by millions of returns right now so patience will be required by all again this year.

From this IRS website - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

As of May 15, 2021, we had 300,000 individual tax returns received prior to 2021 in the processing pipeline. Including current year returns, as of May 15, 2021, we had 16.4 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 Additional 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.

[Genevapiwell59]

I’ve been waiting over ten weeks now.  I don’t claim the child tax credit or nothing like that it is suppose to be direct deposit. It was accepted by the IRS 3/15/21. I can’t get an answer from anyone either have talk to IRS and turbo tax. I figure they could find out if there was some kind of problem and that’s why its been processing forever but no    No help at all I mean I thought that’s why I paid every year in vase something like this happen 

[Critter-3]

@Genevapiwell59 

You paid for a DIY program which cannot help you navigate the IRS system which is very overwhelmed this year or speed up the process ...  even the Taxpayer advocate office cannot help you and that is their sole purpose.

The IRS is seriously backlogged due to all the new tax laws and extra stimulus filings, as well as unprocessed 2019 returns left over from the COVID shutdown.  Lots of other folks are still waiting (some since mid-February), so please continue to be patient.  Also see:

At least 8 million tax returns are in limbo at the IRS because of the pandemic, delaying refunds (ms...

Have you checked your status here: TurboTax and IRS ?

Although the IRS has processed and issued most refunds from e-filed returns around 21 days, because of the pileup caused by Covid, CARES Act, stimulus and the American Rescue Plan Act, some of the returns will require more time to review. 

 Several items can  delay the processing of the 2020 return ... some of which are :   

> unemployment

> repayment of the PTC

> stimulus credit  on line 30 of the 2020 form 1040

> if you used the 2019 earned income for the 2020 EIC &/or  CTC/ACTC

> if you have prior year balance dues or unfiled returns

> the info on the W-2 doesn't match what the employer sent in and/or the employer's W-2 is not yet on file

> a variety of other items that require humans to look at

Due to understaffing and over tasking at the IRS again this year many returns will be delayed for as much as months.  The aging computer system is being over taxed trying to process millions of  2019 returns and 2020 returns (some of which will need extra processing this year due to the late tax law changes)  AND putting out the third stimulus payments.  If you want to vent to someone then contact your  local congress person and demand they fund the IRS sufficiently so that they can hire enough people and update their computer systems to handle all of the demands made upon this agency.  The IRS  can only do so much with the continued reductions to their budget. 

See these  recent news articles for some sad truths:

The IRS is behind in processing nearly 7 million tax returns, slowing refunds as it implements new s...

Where is my damn IRS tax refund? New answers emerge as delays frustrate millions (msn.com)

https://money.yahoo.com/taxpayers-waiting-to-get-last-years-tax-refund-190333088.html

https://money.yahoo.com/irs-employees-say-out-of-ink-printers-are-delaying-tax-returns-171522801.htm...

Called the IRS lately? Agency struggles to hire customer service reps despite pandemic unemployment ...

Due to IRS security measures, processing may take a little longer than it has in the past.

[CF Powell]

Did they say 10 weeks from filing date or 10 weeks from when you should have received your refund? Do u have a contact # to get a live person from IRS?

I filed electronically the 1st week of April.  The IRS said I should get refund on May 5th.  It never arrived direct deposit. When I checked on my refund status it just says “processing” I’m not able to get ahold of anyone live when I call the IRS.  just automated system saying refund is being processed. !!???  Causing financial issues for me. If I was late paying them I’d be charged interest and penalty.  Why are they able to not pay me without explanation nor interest and penalty?

[Critter-3]

Only the IRS controls when and if a tax refund is Approved and Sent.

Since the season started 2 weeks later than normal millions more returns piled up in the processing pipeline   so  it is understandable that it will take a bit longer than normal  to clear the backlog of returns so patience will be needed ... check the IRS site every couple of days for a progress report :  

https://www.irs.gov/refunds

Call the IRS:  1-800-829-1040  hours 7 AM - 7 PM local time Monday-Friday

When calling the IRS do NOT choose the first option re: "Refund", or it will send you to an automated phone line.  

So after first choosing your language, then do NOT choose Option 1 (refund info).  Choose option 2 for "personal income tax" instead.

Then press 1 for "form, tax history, or payment".   

Then press 3 "for all other questions."

Then press 2 "for all other questions."  

- When it asks you to enter your SSN or EIN to access your account information, don’t enter anything.  

- After it asks twice, you will get another menu.

Then press 2 and then 4 …       

It should then transfer you to an agent.

Or you can contact your local IRS office.  See this IRS website for local IRS offices - http://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1 or call 1-844-545-5640 to set up an appointment

Or you may want to contact a Taxpayer Advocate in your area.  See this IRS website for Taxpayer Advocate in your area and a toll free number - http://www.irs.gov/Advocate/Local-Taxpayer-Advocate