IRS Progress on Tax Return Processing: Catching Up and Exceeding Expectations
The Internal Revenue Service (IRS) is making significant strides in processing tax returns for the 2024 tax season, despite a slightly delayed start compared to 2023. As of March 29, the IRS had processed over 88.8 million federal income tax returns, representing a 1% decrease from the 89.6 million processed during the same period last year. However, it’s important to note that the 2023 tax season began six days earlier, providing the IRS with more time to receive and process returns.
The IRS has also issued over 60.8 million refunds as of March 29, a 3.3% decrease from the 62.9 million refunds issued by March 31, 2023. Despite this slight decline, the IRS has refunded over $185.6 billion in the first eight weeks of this tax year, a 1.4% increase from the $183.1 billion refunded during the same period last year.
Average Refund Amount Increases
The average refund size has also increased by 4.8%, from $2,910 for the 2023 tax season through March 31, to $3,050 for this season through March 29. This increase is attributed to several factors, including the impact of inflation and changes in tax laws.
Direct Deposit Remains Popular
Direct deposit continues to be the preferred method of receiving refunds, with 58.1 million taxpayers choosing this option. The average refund for direct depositors is $3,124, compared to $2,970 for the same period last year.
IRS Systems Running Smoothly
The IRS reports that all systems are running well, contributing to the agency’s ability to process returns and issue refunds efficiently. Taxpayers can expect to receive their refunds within 21 days if they file electronically and choose direct deposit.
The IRS is making progress in catching up on tax return processing and is on track to meet the April 15 filing deadline. Taxpayers can expect to receive their refunds within the usual timeframe if they file electronically and choose direct deposit. The IRS encourages taxpayers to file their returns as soon as possible to avoid any delays.
2024 IRS TAX REFUND UPDATE – New Refunds Released, Tax Delays, 60 Day Reviews, Audits, Notices
FAQ
Does the IRS still have a backlog?
How fast is the IRS processing tax returns 2024?
Should I be worried if my refund is still being processed?
Has the IRS started approving refunds 2024?
Will the IRS wipe out its massive backlog of returns?
The IRS could wipe out its massive backlog of returns by the end of the year, IRS Commissioner Charles Rettig said Thursday. His optimistic prognosis comes as millions of people are still waiting for the overburdened agency to process returns from past tax filing seasons and send their refunds, even as the IRS entered a new tax filing season.
How is the IRS dealing with this year’s tax filing season?
As the IRS continues to work through the backlog, the agency is also dealing with this year’s tax filing season. To date, the IRS has processed more than 143 million returns with nearly 98 million refunds worth more than $298 billion being issued.
What’s the biggest challenge for the IRS in tax filing season?
But the major challenge the IRS continues to face in tax filing season, according to the agency, is paper returns — which involves the tedious process of physically entering the information into their systems. “The issue for the Internal Revenue Service has always been paper, pre-pandemic and during the pandemic,” Rettig said.
Why does my tax refund take so long?
While the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer for a variety of reasons, including when a return is incomplete or needs further review. Delays can be caused by simple errors like an incomplete return, transposed numbers or when a tax return is affected by identity theft or fraud.