If you’ve already filed your 2020 tax return and are wondering where your federal refund is, you’re not alone.
Reading this might help you find out exactly why your tax refund is taking so long to hit your bank account.l We answer a few of the most common questions that we've received as to why your tax refund may be held up and what you can do about it today.
The happy young married couple receiving confirmation that their tax refund has been deposited. To date, Jasmine Rose Financial Services has helped more than 127 clients resolved their tax issues and resolve their refunds that were once held up by the IRS during the Pandemic.
This May Be Happening to Your Tax Return
USA Today recently published a story detailing this hard truth: More than 29 million Americans see their tax refunds delayed each year due to manual processing.
Erin Collins, a national taxpayer advocate who is referenced in the article, cites a few reasons for the delays, from sweeping tax code changes to outdated systems and a backlog of unprocessed prior-year returns.
You can read all about it here: Americans face delays as IRS holds nearly 30M tax returns for manual processing. Before you do, though, continue reading below for important information on how to find out if your return is being held for manual processing.
Q. Twenty-one days have passed, why hasn't the IRS issued my tax refund?
In normal times, taxpayers who file error-free returns can generally expect their refunds within 21 days after the IRS has accepted the return. Still, as you know, these are abnormal times, and some refunds are not being sent out until more than six weeks have passed. Who is this likely to happen to?
Q. Why does my tax return say still being processed on the IRS website?
The returns most likely to be held for manual processing are those from taxpayers with any material life or economic changes, such as:
added or lost a dependent
had a baby or adopted a child
took a large withdrawal from your retirement plan
moved to a new location
lost a job
started a new job
moved to a new state
claimed a new tax credit
purchased a home
started or closed a business
Even first-time tax filers may be selected for manual processing
Let’s face it, the above changes occur during the best of times, but as you’ve seen during the Covid-19 crisis, Murphy’s Law is in full effect and negative life events seem to be heightened.
Q. So, what can I do to get my tax refund from the IRS?
If you’re waiting for your tax refund and/or haven’t yet received some of any of your stimulus payments (formally known as an “Economic Income Payment”) and have already used the Where’s My Refund tool on the IRS.gov website or called 800-829-1040 to inquire about your refund, then do this:
Contact the Economic Stimulus Hotline by phone at 800-919-9835 to check on your stimulus payment, or call the Tax Refund Hotline number at 800-829-1040.
Q. What do I do if I think the IRS has taken my refund for child support, back taxes, or an old tax debt?
If you think your refund has been offset, contact the Treasury Offset Hotline at 800-829-4477.
What To Do If You Have Received a Letter from the IRS
First of all, don't panic. There is help, but don't do this:: trash or ignore. You have to respond to it, or you may be subject to penalties and interest.
So, if you have received a letter from the IRS and do not know how to respond to it, contact us at 703-229-1777 for tax resolution services.
Jasmine Rose Financial Services can help. Tax planning, tax resolution, and even tax prep for late filers, are our specialties.