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When it comes to tax season I receive a lot of reader questions, many tinged with a hint of desperation, around why IRS tax refunds are taking so long to be processed and what can be done to get their money sooner rather than later. This was no different in the latest tax season where a number of folks have commented on the extended delays they are seeing with the processing of their tax returns and payment of long overdue refunds. Despite PATH limitations now having lifted, many filers are still stuck in IRS refund processing limbo. In fact the IRS had already announced that there will likely be longer than usual tax refund payment delaysdue to processing/validation of past year and amended returns, staffing/budget constraints and the ongoing payment and reconciliation of past stimulus payments and tax credits (like the CTC). e-File Your Current and Past Year Returns for Missing Stimulus & Tax Credits Those who filed paper based or amended returns, will likely face even longer delays in getting any refunds and will likely see the “Return Processing Has Been Delayed Beyond The Normal Timeframe” WMR message for extended periods and ongoing notices from the IRS around additional 60 day review periods. For returns that require special handling or manual processing the IRS has said that due to staffing shortages it is taking up to 120 days to complete processing and notify taxpayers of adjustments or adjudications.
Reasons why your IRS refund may be delayed
As always keeping checking the IRS’ Where is My Refund Apps (WMR and IRS2GO) for exact dates on your refund payment. You can start checking on the status of your refund within 24 hours after the IRS receives your e-filed return or 4 weeks after you mail a paper return. Get the latest money, tax and stimulus news directly in your inbox The WMR apps displays your tax return processing through three stages: Return Received; Refund Approved; Refund Sent. You can see more on refunds and delayed payments in these videos covering this topic
So what can you do if your tax refund is taking much longer to get than expected?There are two main categories that cause your tax refund processing to taking longer than expected. Either something is wrong with your tax return filing, e.g. missing information, additional identity fraud/verification, incorrect social security numbers etc; or income information from related sources (employer, ex-partner, IRS notices) do not add up. For example same dependent claimed in multiple tax returns. So here are a few things you can do to try and figure out why your tax refund is so taking so long to get to you.
2022 IRS tax season statisticsThe National tax payer advocate services (TAS) released some interesting statistics that confirm the ongoing challenges the IRS is facing in processing returns and paying refunds on time. Especially for paper filed returns. As you can see from the official statistics below, lots of folks are impacting by IRS processing delays.
IRS Operations PageTo get the latest update on IRS tax refund processing delays, you can see the IRS operations page which provides information on key functions and causes behind some of the delays when it comes to phone support, paper filed returns and ongoing reviews. Tax Payer Identify Verification Delaying IRS Tax Refund Processing and Direct Deposit PaymentsIn a lot of recent cases, it appears that the IRS is delaying refund processing because they are having to spend a lot more time validating tax payer identities given the rise in online tax related fraud over the last few years. In most cases the IRS will notify selected tax filers via WMR or mail (they will never call you) to contact a IRS number to verify their identity. After verification it could take up to 9 weeks for you to get a refund. See more in this article. Refund Offset – Why Your Refund May be less than expectedAnother area of confusion for those expecting a refund is that when they get a refund it is actually less than the amount they were expecting or provided by their tax software provider. The reason for this is that the federal government has “offset” or deducted monies from your tax refund to cover debts you owe other federal agencies. Under the law, federal payments such as tax refunds can be collected against by approved agencies (e.g the IRS) before being paid to you. You will get a letter from the IRS explaining this offset to your federal refund and why it differs from what was estimated in your filed return. You will generally see a tax topic 203 message or code 898 on your transcript when you have an offset applied to your IRS refund. They will give you an opportunity to dispute this collection, but you will have to prove you had no federal obligations. If you have questions regarding the offset of your refund you can call the Treasury Offset Program (TOP) on 800-304-3107. When will I get my paper check if my Direct Deposit is delayed or rejected?At times people will change their bank accounts after their return is filed or provide incorrect account numbers. In these instances the IRS will issue a paper check when they cannot send by direct deposit. This will delay your refund, but the actually IRS processing time for a paper check is only 2 extra days more than direct deposit. Usually paper checks are mailed on Friday’s and you usually get within 1 week; the following Friday or sooner. The US Postal usually don’t deliver refund checks until Saturday morning to prevent someone watching your mail and stealing the check. If I can order my IRS tax transcript does it mean I am getting my refund direct deposited soon?This question used to come up a lot, but is not very relevant since you can request a tax transcript online via your IRS account. The transcript is free and does show processing tax codes related to progress and status of past and current tax returns. That being said, there is a correlation in reviewing your transcript for current year IRS processing transaction codes. If you see transaction codes (like 846), it means the IRS is or has processed your tax return, and refund where applicable. But the IRS is very clear that reviewing your transcript does not mean you will imminently be getting a refund and is among the common myths and misconceptions repeated in social media. They still say that checking the WMR website or IRS2Go app is the best and official way to check your refund status. Tax Topic 151 vs 152 noticeWhen you log on to the WMR website or IRS2Go mobile app, you may be presented with a message to refer to IRS Tax topic 151 or 152 in relation to your refund. But what do these mean? Tax Topic 151 simply means that you’re getting a tax adjustment due to an offset or IRS proposed adjustment. You will get an official IRS letter or notice explaining the actual offset and adjustments to your tax return, and details on how to appeal this action – but likely it will delay you getting your refund. While not great news, the silver lining here is that the IRS has processed your return and your adjusted refund (where applicable) should be on its way. Tax Topic 152 on the other hand means means you’re getting a tax refund in line with IRS processing guidelines (generally within 21 days) and this notice confirm the methods for payment (direct deposit, check). I know it can be really frustrating to see ongoing delays in getting your tax refund. My answer is be patient, look into the above steps and contact a tax advocate or tax professional if you get nowhere with the IRS. WMR and IRS2GO Refund Status Error CodesWhen you see an error on the WMR and IRS2Go tool you will get an error code and a short description. Sometimes these can tell you the cause (e.g 1161 – Refund delayed, bankruptcy on account ). But in many cases this provides no help and in that case you should reference the IRS Refund Error Code list to get more details. You can also see the comments below for more errors people are facing. Subscribe via email or follow us on Facebook, Twitter or YouTube to get the latest news and updates How long after I verify my identity will I get my refund 2022?If we successfully verify your identity, we'll process your tax return. It will take up to 9 weeks to receive your refund or credit any overpayment to your account.
Why does it take 9 weeks to get my refund?Why would it take 6-9 weeks to receive my refund? Because it lands on an IRS employee's desk to be verified and processed manually.
Does it really take 9 weeks after identity verification to get refund 2022 Reddit?You do not need to wait for a letter Once you get confirmation it will tell you 9 weeks, but most people only have to wait about 2 1/2 weeks.
How long does it take to verify identity for tax refund?After successful verification, it takes about 6 weeks to complete processing. The return will be rejected and investigated as identity theft/tax fraud if: Verification fails to confirm your identity or that you filed the return.
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