Here are my annual words of caution since some are so eager to file the returns early….remember patience is a virtue and don't plan on your refund being in your account on a certain date then you won't be disappointed or overdrawn. It is very possible that you get a DD date then it gets put on hold while the IRS reviews the account which can delay it for months. Do not be in a rush to transmit the return … once you press that button you cannot stop the filing or make any changes until the IRS accepts or rejects the return. If you do need to make changes and the return is accepted for processing then you must wait until that return has fully processed and you can amend the return which can take months to process.
Three years ago the IRS started verifying W-2 forms before issuing a refund which means filing your return before the W-2 is issued will not work since your return will be held up until the employer has filed the W-2 with the IRS.
And if you have Earned Income Credit or the Additional Child Tax credit the returns cannot be processed at all until 2/15 so those refunds will not hit until late February at the earliest … see this page :
https://www.irs.gov/newsroom/get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2021
The IRS no longer processes returns in first in first out batches. They are processed individually so returns sent in at the same time will not necessarily process together.
The IRS states that 9 of 10 returns will process in 21 days or less from being accepted not filed. However considering that the IRS processes more than 140 million returns that means 14 million will be delayed for more than 21 days.
Think of the IRS process as a long pipe line. Some returns will be rejected before being allowed into the pipe and the rest will be accepted. Then once accepted into the pipeline many will process directly through without any delays and some will not. Some returns will be siphoned off for further review of some kind. The basis of what triggers these reviews is a well guarded secret but some are just picked randomly every year.
Some reviews are automated and some will require human attention. The processing times will vary and due to the continued understaffing situation and the gov shutdown they are likely to take much longer this year than last.
