The IRS says it is catching up on all of the millions of returns that have not yet been processed including tax returns that are due a refund. Here’s the bad news: it could still take months– four months or longer — before all tax returns are processed and IRS tax refunds are made. The reality is that there are still millions of tax returns delayed by the Covid pandemic shutdowns and delays at the IRS. So where is your refund? Read this new report from the IRS. Yes, there are millions of taxpayers waiting — and some may have to file their tax returns again! In the meantime, this backlog at the IRS might help you get an IRS Fresh Start or an IRS Offer In Compromise.
AN UPDATE FROM THE IRS AS OF SEPTEMBER 30, 2022
The IRS in its newest announcement said “we are opening mail within normal time frames, and we’ve processed all paper and electronic individual returns in the order received if they were received prior to March 2022 and the return had no errors or did not require further review.”
THERE ARE STILL MILLIONS OF UNPROCESSED TAX RETURNS
The IRS is reporting that as of September 23, 2022 there were 6.2 million unprocessed individual returns received this year. These include tax year 2021 returns and late filed prior year returns.
MILLIONS OF TAX RETURNS NEED SPECIAL HANDLING
The IRS is also reporting there are errors on returns that require special handling. The IRS says that of the 6.2-million unprocessed returns there are 1.6 million returns that require error correction or other special handling, and 4.6 million are paper returns waiting to be reviewed and processed. The IRS says “this work does not typically require us to correspond with taxpayers, but it 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.”
HOW LONG YOU MIGHT HAVE TO WAIT
The IRS says “we continue to process tax returns that need to be manually reviewed due to errors. For returns received in the current year, we process individual tax returns for which refunds are due first. Tax returns reflecting tax owed are processed last, but if a payment is mailed with the tax return, the payment is separated upon receipt and deposited to ensure the taxpayer account is credited for the payment.”
As the return is processed, whether it was filed electronically or on paper, it may be delayed because it has a mistake, is missing information, or there is suspected identity theft or fraud. The IRS says If they can fix the tax return without contacting you, they will.
120 DAY DELAYS
But if they need more information or need a taxpayer to verify that they sent the tax return, the IRS will send the taxpayer a letter. The resolution of these issues could take more than 120 days depending on how quickly and accurately taxpayers respond, and how quickly the IRS can complete the processing of the return.
WHAT YOU SHOULD DO IF YOU’RE WAITING
The IRS says that in most instances, no further action is needed. Whether you filed electronically or by paper, the IRS will contact you by mail if there’s a need for more information or if the IRS made a change to your return. 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 are due a refund, filed on paper more than six months ago, and Where’s My Refund? does not indicate we received your return, you should resubmit your tax return, electronically if possible.
YES, YOU MAY HAVE TO RESUBMIT YOUR TAX RETURN
If you do resubmit your tax return because the IRS cannot confirm it received it, the IRS says make sure it includes an original signature, and include all documents submitted with the original return. But if the IRS on the Where’s My Refund? report says it has your tax return, the IRS says please do not file your tax return again.
WHAT IF YOU FILED A 1040-X AMENDED TAX RETURN?
The IRS says that as of September 24, 2022, there were 1.5 million unprocessed Forms 1040-X. “We are processing these returns in the order received and the current timeframe can be more than 20 weeks. Please don’t file the same return more than once, says the IRS.
ARE YOU DUE A REFUND ON PANDEMIC UNEMPLOYMENT INSURANCE?
The IRS continues to review tax year 2020 returns and process corrections for taxpayers who paid taxes on unemployment compensation, to exclude the compensation from income if eligible. To date, the IRS has issued over 11.9 million refunds totaling $14.6 billion. Some taxpayers will receive refunds, while others will have the overpayment applied to taxes due or other debts. The IRS will mail a letter to affected taxpayers to inform them of the corrections, generally within 30 days from when the corrections were completed.
YOU CAN CALL US WITH YOUR QUESTIONS
We know it is difficult to get through to the IRS to ask them a question about missing tax refunds and if you need to file your tax return again. So call us. We’ll be happy to discuss your tax situation with you. We’ll also discuss your eligibility to use the IRS Fresh Start Program to resolve your tax debt. We can also discuss the IRS Offer In Compromise Program with you. And if you are not eligible for the IRS Fresh Start Program and the IRS Offer In Compromise Program, we can discuss your other alternatives to reduce or pay off your IRS tax debt.
THE IRS FRESH START AND OFFER IN COMPROMISE PROGRAMS
In the meantime, this backlog of unprocessed tax returns and even missing returns at the IRS might help you get an IRS Fresh Start or an IRS Offer In Compromise. If you have tax debt you should call us about these IRS Fresh Start and Offer In Compromise options.
The video below tells you how easy it is to talk to us about the IRS Fresh Start Program and the IRS Offer In compromise Program.
Remember, we are standing by to discuss your tax issues and to answer your tax questions. Our tax resolution specialists are ready to discuss the IRS Fresh Start Program and the IRS Offer In Compromise Program and other ways to resolve your tax debt and to ease your tax issues. Since there are millions of unprocessed tax returns, calling us might be your best bet.
Here again is the direct phone number to call our senior tax resolution specialist Tom at our office: 949-359-0810