The good news: The Internal Revenue Service plans to handle the filing of pandemic-related tax returns in 2020 by the end of 2021, in time for the start of the 2022 tax season.
The bad news: Millions of taxpayers are still waiting for a refund or are having trouble understanding the message from the IRS that the refund amount has been adjusted. The IRS will also receive an additional 4 million in tax returns for the 2020 fiscal year through the October 15 extension period.
“I’m a professional tax agent, but they’re totally overwhelmed,” said Claudia Hill, a registered agent in Cupertino, California. It helps clients set up IRS math error notifications related to credit checks/incentives for discounts. It’s helping taxpayers who are still awaiting returns of more than $1 million in the 2019 tax year. And he’s working on 62 extended returns scheduled for this week and his own returns.
“Taxpayers need more transparency when processing their tax returns,” said the National Taxpayer Advocate in a September blog series titled “Inequality on the Road”.
Here are the latest statistics for the sign-up season and where to get help.
As of October 2, the IRS had 6.8 million unprocessed individual tax returns for the 2020 tax year, up from 7.6 million the previous week. The IRS has reduced the number of applications requiring treatment from a record high of 9.8 million on May 1, 2021 to the current 224,000 individual applications. In some cases, this process can take 90-120 days to complete. To check your status, see “Where’s My Refund?”
More than 1,040 tax returns are still pending. As of October 2, the IRS had 2.8 million unprocessed modified personal tax returns on Form 1040-X. Current processing times are typically 16 to 20 weeks. To check the status, see “Where is the corrected return?”
The Find My Refund tool is great if you’re lucky enough to show that your refund has been approved or sent. The problem is when the return process slows down. If you’re one of the millions of taxpayers who are late processing tax returns, this tool simply tells you that the tax return has been received by the IRS and does nothing else. When you try to call the IRS, the person responsible for the call usually doesn’t have any additional information.
Another way to check the status of returns is to create an IRS account online, but due to various security measures and measures, only 40% of those who have tried have succeeded (8). as of May). If you are unable to set up your online account, you can request a transcript from the IRS and it will be sent to you within 10 calendar days. Search for “refund inquiries” to see what payments have been made.
In light of this, “this filing season is unusual,” said the taxpayer’s attorney. It’s dishonest to blame the IRS and the pandemic. Debt of Congress – for reverse laws and new IRS obligations. By the time the US rescue package launched in March, nearly half of personal tax returns for 2020 had already been filed. The law regulates the repayment of excess health insurance loans under the APTC and creates a partial exemption of up to $10,200 for unemployment benefits.
All taxpayers who have filed and paid taxes suddenly need a refund. As of September 3, the IRS had processed a total of approximately 13 million taxpayer accounts and approximately 1 million APTC surplus accounts to reflect unemployment income exclusions. As of mid-September, the National Taxpayer Advocate error elimination system still has around 436,000 statement letters to process, which may need to be corrected.
The recent turmoil affected letters sent to 6.5 million taxpayers, 60 of which were previously received to calculate credit discounts for 2020 tax returns that did not match IRS records. Let me tell you that there is no reference to the daily objection period. “These and other clues are often confusing, but important. If you receive a letter from the IRS regarding a 2020 refund, don’t hesitate in your response. Your potential recovery will be further delayed. , Problems can still occur. How, ”said the taxpayer.
In Hill’s experience, the IRS is the only client to be supported with these papers. In one case, the client claimed not to have received the incentive check, but when Hill finally contacted the IRS tax office, the agent was able to confirm the date and amount of the incentive check deposit. Yes. “You may have told us in your letter of amendment that we believe you received funds that day in direct deposit,” Hill said.
Last week the IRS announced a new online taxpayer information portal with more than $2 million in refunds, subject to special approval. “Are you kidding me?” Hill asked. “We are asking for the help of the public who have filed unprocessed tax returns and those who have filed their 2020 tax returns and received corrective notices.”