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boncough
Returning Member

Update on the American Rescue Plan and our filed taxes

It is now August 17th and I am still waiting for my tax return (which was filed in March, before the American Rescue Plan was introduced) to be reviewed by the IRS and the changes to be applied which will grant me a refund.  In the meantime, I have paid an erroneous tax bill that was sent to me as a result of my originally filed tax return so now the government owes me an additional $200.  Please give me an update on this situation.  I know that I am not the only one waiting for my refund but for me as well as everyone else.....this is crazy.  Will they be paying us interest on the money we are owed?

2 Replies
DoninGA
Level 15

Update on the American Rescue Plan and our filed taxes

Only the IRS controls when a tax refund based on the unemployment exclusion will be distributed.   The refund for the exclusion is separate from any federal tax refund reported on a 2020 federal tax return.

Go to these IRS websites for information -

 

https://www.irs.gov/newsroom/irs-continues-unemployment-compensation-adjustments-prepares-another-1-...

 

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

 

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

 

The IRS is seriously behind in processing 2020 tax returns.  This is due to many factors, such as the pandemic, completing processing of millions of 2019 tax returns, stimulus payments, unemployment compensation exclusion tax refunds., changes in the tax code by Congress in the middle of the 2020 tax season and the like.

 

Millions of taxpayers have not yet received there federal tax refunds.

 

Go to this IRS website for operational status - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

 

The IRS is opening mail within normal timeframes and all paper and electronic individual returns received prior to April 2021 have been processed if the return had no errors or did not require further review. As of August 6, 2021, we had 12.7 million unprocessed individual returns. Unprocessed individual returns include tax year 2020 returns such as 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 and in some cases this work could take 90 to 120 days. 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.

 

What you should do: In most instances, no further action is needed but you may check Where’s my refund or you can view your account. 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.

Critter-3
Level 15

Update on the American Rescue Plan and our filed taxes

@boncough 

 

If you paid the original balance due because they sent a scary bill  then it will be taken into consideration when they eventually get to your return for correction ... all you can do is wait.

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