Tax refund taking too long? Try these steps
Many people are experiencing delays with their tax refunds from the IRS. If you’re one of them, you’re probably as upset as those folks. It can be especially stressful when you add all the other stuff going on around the world.
If you take a closer look at the situation, you’ll notice that the IRS is also going through difficulties because of these worldwide events. Yet, you can try many ways to speed up processing your refund. Stick around to learn more about those methods.
First, I will talk about why IRS tax refunds are taking a long time. Then, we will go through the application process to check if you missed something. After that, I will share some tips on avoiding delays in your refunds next time.
Why is the tax refund delayed?
We can point to two reasons why your tax refunds still haven’t arrived: inadequate funding and the coronavirus pandemic. Together, they’ve been making life hard for taxpayers and the IRS.
Let’s talk about the first factor. Budget allocation for the IRS has gone down by a total of 20% over the past ten years. Meanwhile, it also lost a significant amount of employees.
Between 2010 and 2020, the Internal Revenue Service has lost more than 33,000 full-time staff, including 13,400 enforcement personnel. In response, the Biden administration called for a 15% increase in the IRS budget for 2022.
The IRS may be able to retain more employees with that funding, facilitating tax processing. In other words, this could help you get that tax refund faster than before.
At the time of writing, the Senate is still reviewing this proposal. This agency needs it now more than ever to respond properly to the growing backlog.
To get a better perspective, let’s talk about the current workload. The IRS entered 2021 with more than 11.7 million returns from 2020. The agency spent all of June processing the 2019 returns.
As we get closer to the 2022 tax season, that backlog just keeps piling up. In the middle of December 2021, it had millions more returns to handle.
As a result, taxpayers faced several difficulties with services from the IRS. For example, the agency hasn’t responded to their phone calls.
This meant it couldn’t respond to their requests and inquiries on time. Specifically, the IRS has taken a long time to send tax refunds.
Read More: The Best Tax Software With Easy Help
How to get a tax refund
To check the status of your #IRS tax refund using “Where’s My Refund?,” you’ll need:
•Your SSN or ITIN
•Your tax filing status
•The exact amount of the refund you claimed
Visit: https://t.co/PFiedQsvmp pic.twitter.com/xNsqNp8qDF— IRSnews (@IRSnews) July 3, 2021
Let’s talk more about getting money back from your tax returns. That way, you will have a better understanding of the issue. First, see the difference between a tax return and a refund.
The former is the set of forms you submit every year. If you paid too much, you might request the IRS to return the extra funds. People usually request returns for the following reasons:
- Too much income taxes withheld
- Paid an excess for the estimated taxes
- Carry-backs on net operating losses
- Business credit adjustments
- Capital loss
Confirm that you sent more money than needed. If you did, you might request a tax refund by filling in the overpayment section of your tax form.
Alternatively, you may send a written request to the IRS. It should say the reasons why you’re due for a refund. Place as much detail as possible to increase your chances of getting approved.
Federal and state laws can sometimes be complicated, so you might want to ask a lawyer for help. The tax professional should be able to guide you properly.
What to do with my delayed tax refund
Now, we know why the refunds took too long, so let’s talk about what to do with your current refund application. Start by preparing the following information:
- Your TIN or your social security number
- Your filing status
- The exact refund amount
Then, head to irs.gov/refunds clicks on “Check My Refund Status.” Provide the information above to get your recent tax refund status, usually on the most recent tax year.
If you used e-filing, you would see your status 24 hours after submission. On the other hand, expect it in four weeks to mail your tax return as a paper document.
You may call the IRS for refund inquiries if you haven’t received it 21 days after filing electronically. Alternatively, the Where’s My Refund feature will tell you to get in touch with the agency.
Expect to see such notification as an email. Read it carefully because it may ask you to provide additional information needed for processing.
The IRS also reminds taxpayers that they should expect delays if they mail a paper return or reply to an inquiry about their 2020 tax return. Processing may take longer when a return:
- Is incomplete
- Is affected by fraud or identity theft
- Includes a claim filed for an Additional Child Tax Credit and an Earned Income Tax Credit
- Includes an Injured Spouse Allocation or a Form 8379 that needs 14 days for processing
- Needs corrections to the amount of Recovery Rebate Credit
- Needs further review in general
More importantly, the agency stressed that taxpayers should wait to get their 2020 return before sending another one. It takes more than 21 days for the IRS to issue tax refunds with the following incentives:
- Recovery Rebate Credit
- Earned Income Tax Credit
- Additional Child Tax Credit
How to avoid delays on your IRS tax refund
Use the “Where’s My Refund?” tool to start checking the status of your refund 24 hrs after #IRS acknowledges receipt of your e-filed tax return. You can access the tool at https://t.co/PFiedQsvmp pic.twitter.com/GbmXHt0GjY
— IRSnews (@IRSnews) May 24, 2021
You can avoid delays in your refunds in the next tax season. The best thing you can do is to use e-filing next time. It makes taxes easier for you and the IRS.
As discussed, the agency is already having trouble with backlogs for the 2020 tax returns. Adding your tax return to the pile will most likely cause your refunded taxes to take longer.
Meanwhile, the electronic filing system takes care of the computations, so IRS staff will take less time verifying them. It’s also more convenient than paper filing.
You won’t have to strain your eyes placing the right information. You can easily delete it if you make a mistake instead of printing a new form. You won’t have to do much of the math too.
Besides e-filing, you have more options to facilitate your tax refund application. Let’s take a closer look at each one:
Use tax software
The IRS has a free filing system, but some prefer other software options. That’s because you will have to meet certain criteria for that free government tool.
The best tax software can guide you through your tax return filing to avoid missing any important forms. Some even inform you of refunds or incentives you may include.
In turn, your tax tool may even save you some money, especially when you compare it with a tax preparer’s fees. You will need to prepare at least $220 for their services, but some software may provide them free.
Report your Child Tax Credit and stimulus payments correctly
The government offered various relief programs in response to the coronavirus pandemic, such as stimulus checks and Child Tax Credit. Check if you received any before filing.
Folks often throw junk mail immediately so that they might miss their stimulus payments in a pile. Meanwhile, you might forget to fill out your Schedule 8812 or the “Credits for Qualifying Children and Other Dependents.”
It’s easy to make this mistake as most taxpayers didn’t need to include this in their previous returns. Take note if you and your spouse filed jointly or separately.
Send your returns to the correct IRS processing center
The Tax Revenue Service has various facilities to distribute its work among several areas. To make sure staff and taxpayers follow this system, it matches applications with the right offices.
If you forward your forms to the wrong processing center, IRS staff will forward yours to the right one. Your tax refund processing will only start once your return reaches that center.
This is another reason electronically filing your returns is much more convenient than paper filing. You likely won’t have to worry about this issue if you use online submissions.
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Final thoughts
Pay your taxes on time to avoid penalties and other negative consequences. Make sure that your tax forms contain the correct information to avoid delays.
This would also boost the chances that you’ll get your tax refunds on time. Note that the IRS is currently experiencing difficulties with its backlogs.
Head to the IRS website for more information. You may also call 800-829-1040 to get in touch with an IRS customer service representative. They’re open from Monday to Friday, from 7:00 AM to 7:00 PM local time.
