Why would the IRS have a "Verification of Non-Filing Status" letter for me on my 2020 taxes, when I did file me taxes?

[armijoz444]

Applying for home loan. Lender requested transcripts from 2019 and 2020 taxes. 2019 Transcripts are available, but 2020 only pulls up a letter of "Verification of Non-Filing Status." I filed my taxes on 5/17 and they were accepted. Why is this letter there and how do I obtain my transcripts for 2020?

[DoninGA]

The transcripts for tax year 2020 will not be available until the IRS processes your tax return.

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

As of July 17, 2021, we had 15.6 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.

[rjs]

The IRS is showing the Verification of Non-filing letter because they have not yet processed your 2020 tax return. The 2020 transcript will not be available until sometime after the IRS processes the return, which might not be until a few months from now. I would think that the lender is aware that IRS processing is severely backlogged this year, and that it is taking months for tax returns to be processed. If the person you're dealing with doesn't know that, show them the information that DoninGA referenced on the IRS web site, or ask to speak to someone higher up (or find another lender). Perhaps they will accept a copy of your tax return that includes the Electronic Postmark, which shows that it was accepted. In the PDF from TurboTax, the Electronic Postmark page is at or near the end of the federal tax return.

[pluu81]

I got the same letter when I went to pull the 2020 taxes that were submitted on 5/6/21 and was accepted.  My lender asked for the acceptance email and since we owed monies, I had to send the bank statement showing the IRS took the monies and that was good enough for the lender.  Hopefully, IRS will update the status of my return sooner than later.