IRS Refund Tracker: Why is your tax return still being processed?

Manyone in the United States will have already sorted out their 2021 tax returnbut there are citizens who are still waiting for their 2020 tax refund.

At the end of October, the IRS reported that there were nearly nine million taxpayers awaiting their 2020 tax refunds, with arrears being the main reason for the delay.

Why is your tax return still being processed?

It is believed that the majority of delays in tax refund is due to an error or inaccurate information on your return, with problems with stimulus funds, child tax credit or earned income tax credit being at the top of the list.

“Once the heist is there, the IRS is so late right now that everything is taking so long,” said CPA Aradhana Aggarwal.

“They are understaffed, it takes months and months to process these returns.”

Moreover, the IRS highlighted the COVID-19 pandemic and the fact that many workers have been forced to work from home, while several IRS offices across the United States have closed.

“I saw people waiting even five, six months even though the returns were filed electronically and even though the standard time is still 21 days,” Aggarwal added.

The IRS moved the goal posts

As stated, despite the usual turnaround time for tax refund being 21 days, the IRS confirmed that it could take up to four months to receive the money owed to you, partly thanks to the large backlog.

“Tax returns are opened and processed in the order received. As the return is processed, whether it was filed electronically or on paper, it may be delayed because it contains an error, including including errors with recovery rebate credit, missing information, or suspected identity theft or fraud,” said the IRS.

“If we can resolve the issue without contacting you, we will. If we need more information or if you need to verify that it was you who filed the tax return, we will write you a letter. Resolving these issues could take 90-120 days depending on the speed and accuracy with which you respond, and the ability of IRS staff trained and working under social distancing requirements to complete processing your return.