Taxpayers eagerly awaiting their IRS refunds may encounter delays in the processing and disbursement of their funds. This guide will provide an overview of the factors contributing to these delays, the expected timeline for refund issuance, and strategies for staying informed about the status of your refund.
Causes of IRS Refund Delays
- Increased Tax Return Volume: The IRS is experiencing a surge in tax return filings, leading to longer processing times.
- Complex Returns: Returns involving Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) require additional scrutiny, resulting in potential delays.
- Identity Theft and Fraud: The IRS is prioritizing the detection and prevention of fraudulent tax returns, which can slow down the processing of legitimate returns.
- System Updates: The IRS is implementing system upgrades to improve efficiency and security, which may temporarily impact processing times.
- Staffing Shortages: The IRS is facing staffing shortages, which can contribute to delays in processing and communication.
Expected Timeline for Refund Issuance
- E-filed Returns: Most e-filed returns are processed within 21 days.
- Paper Returns: Paper returns generally take 6-8 weeks to process.
- Returns with EITC or ACTC: Refunds involving EITC or ACTC may take up to 8 weeks to process.
How to Stay Informed About Your Refund Status
- Where’s My Refund? Tool: The IRS’s online tool provides real-time updates on the status of your refund.
- IRS2Go App: The IRS mobile app offers convenient access to refund status information.
- Phone Inquiry: Taxpayers can call the IRS at 1-800-829-1954 to inquire about their refund status.
Tips for Avoiding Refund Delays
- File Electronically: E-filing significantly reduces processing times compared to paper returns.
- Use Direct Deposit: Direct deposit ensures faster and more secure receipt of your refund.
- File an Accurate Return: Errors or missing information can delay processing.
- Avoid Refund Anticipation Loans: These loans come with high fees and can delay the receipt of your refund.
IRS refund delays are a reality for many taxpayers, particularly during peak filing season. By understanding the causes of delays, staying informed about your refund status, and taking steps to avoid potential issues, you can minimize the impact of these delays and receive your refund as efficiently as possible.
IRS Tax Refund Update – Delays and Smaller Refunds
FAQ
Why is my 2020 federal tax refund taking so long?
Are some people still waiting for their 2020 tax refund?
Is it too late to get my 2020 tax refund?
Have not received my 2020 federal tax return?
Can I get a 2020 tax refund if I don’t file?
The IRS reminds taxpayers seeking a 2020 tax refund that their funds may be held if they have not filed tax returns for 2021 and 2022. In addition, any refund amount for 2020 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts, such as student loans.
Why is my tax refund delayed?
Your refund may be delayed if your return needs corrections or extra review. If we need more information to process your return, we’ll send you a letter. See your personalized refund date as soon as the IRS processes your tax return and approves your refund.
Are You Waiting on a 2020 tax return to be processed?
Waiting on a 2020 tax return to be processed? People whose tax returns from 2020 have not yet been processed should still file their 2021 tax returns by the April due date or request an extension to file. Those filing electronically in this group need their Adjusted Gross Income, or AGI, from their most recent tax return.
When does the IRS issue tax refunds?
To help avoid fraudulent claims for these credits, the IRS doesn’t issue refunds for tax returns claiming these credits until mid-February each year. The IRS has processed more than 91 million individual returns for tax year 2020 as of April 22, 2021, and more than 68 million refunds have already been issued to taxpayers.