What is causing refund delays? Is it the 8915-e?

[shadobie17]

My refund has been “processing” for over two months now. I did not have any additional rebates or anything else that people are mentioning as causing delays. I did have form 8915-e this year. From what I’m reading, the IRS is actually getting pretty caught up so I do not understand what is going on here. People need these funds and it is impacting their lives.

Did anyone else file the 8915-e and experience the same?

[fanfare]

If you filed a complete and accurate tax return, it will be processed quickly.

If there is an issue that requires a person to review, then you get on queue with the other millions of tax returns that need to be reviewed by a person.

[fanfare]

I tried four different tax software packages to file Form 8915-E.

Every one gave a different wrong result either with taxable amount or tax due.

That includes TurboTax Online Premier. TurboTax still today calculates the wrong taxable amount for me.

If you used one of those tax prep packages, your return may be incorrect.

IRS may have to review it.

[shadobie17]

Oh my gosh, you are kidding me! How far off are we talking?

so this is an issue caused by TurboTax. That is good to know. They will be hearing from me. Thank you for the info!

[shadobie17]

I just cranked through the numbers on my return today, and everything appears to be calculated correctly, including the 8915-e. I guess I’ll find out eventually. This is so ridiculous.

[Walker923]

I used TurboTax to file as well. We also had to file an 8915-e form. We filed February 25th and still have not received our refund as of May 22nd. We have spoken to 2 different IRS reps on the phone. Both have said it is still in processing, it will just take time. 

[Ludozone]

I file my return with Turbotax on March 14. 2021. It included a form 8915-E as the only "special tax". As of June 22, the IRS is still processing my return! Does this form trigger an automatic manual review?

[Critter-3]

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 a good laugh:

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 ...

[jdh64]

I had to mail my return in due to form 8915-e. I mailed in mid April and it is now almost the end of July and I have not received my refund. When I check online it just says "We cannot provide any information about your refund". 

[xmasbaby0]

@jdh64 Sadly we have heard from many people who are experiencing long waits----it is taking the IRS months to process mailed returns, so your wait since April is quite common.

MAILED RETURNS

Per the IRS:

COVID-19 Mail Processing Delays

It’s taking us longer to process mailed documents including:

• Paper tax returns, and
• All tax return related correspondence.

We are processing all mail in the order we received it.

Do not file a second tax return or call the IRS.

 It can take 3-4 weeks  (or a LOT longer since the IRS is severely backlogged) for anything to show up on the IRS site when you mail a tax return.  Expect at least 6-8 weeks for complete processing of a mailed return and probably  MUCH MUCH longer.

If  you mail a tax return (or a payment) to the IRS, it is a good idea to use a mailing service that will track it like UPS or certified mail so you will know it was received.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s. 

TurboTax will not know anything about your mailed return, and will continue to show “Ready to Mail” on your account.  TurboTax will not know that you put your tax return in an envelope and took it to a mailbox.  TurboTax does not get updates on mailed  (or e-filed) returns.

When the IRS opens its mail and begins to process mailed returns you can check the status on the IRS site. https://www.irs.gov/refunds

State returns have to be mailed to the state.

https://ttlc.intuit.com/questions/1899433-how-do-i-track-my-state-refund

If you are wondering if you should send your return again——the IRS does not want you to file a second time.   Putting two tax returns into the system at the same time can lead to confusion and even more delays.   If you did not use tracking and do not know if the return was received—-you have to make your own judgement call and decide if you want to risk further delay by sending the return again.