Why is my IRS tax refund delayed 2021? Report offers clues

p 1 why is my tax refund taking so long the irs my tell you but this report offers clues

Greater than a month after the official opening date of the 2021 tax season, many People who filed early are nonetheless ready for refunds to hit their financial institution accounts. The Inside Income Service, which inspired taxpayers to file early for a speedier return, maintains that almost all refunds will probably be issued inside 21 days for taxpayers with direct deposit who file on-line, however that hasn’t been the expertise for a lot of early filers.

Quick Firm wrote in regards to the difficulty earlier this month, and we proceed to obtain letters every day from taxpayers who say they’ve been ready longer than 21 days. One widespread grievance is the lack of knowledge from the IRS about what could also be inflicting the delay. The company says some tax returns take longer to course of, together with people who comprise errors, are flagged for identification theft, or simply require “additional evaluate typically.”

However taxpayers who’re capable of attain the IRS by cellphone say the company gained’t present specifics, and that lack of communication is a supply of giant frustration in a 12 months when cash is tighter and persons are counting on their refunds much more than regular.

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In reality, a recent report to Congress from the Taxpayer Advocate Service—an unbiased workplace throughout the IRS—underscored this very downside. It notes that 5.2 million refunds had been flagged by fraud filters in 2020, that means the filers’ revenue or identification needed to be verified. Whereas most of these flagged had been discovered to not be fraudulent in any respect, the report notes that the additional step brought on delays for a big variety of flagged accounts: 25% of refunds flagged for revenue verification took greater than 56 days to reach, and 18% of these flagged for identification verification took greater than 120 days. That’s nearly 4 months!

Much more irritating, the report discovered, is that the IRS’s Where’s My Refund instrument—which is supposed to offer a level of sanity to taxpayers anticipating a refund—is little assist to many who get flagged. It doesn’t provide details about the reason for a delay, what info may be wanted to rectify it, or how lengthy they’ll anticipate to attend. This black gap of communication is typically what sends taxpayers to the telephones or to social media to complain.

“Though the IRS has tried to expedite refunds, it wants know-how upgrades and procedural enhancements to do extra,” the report’s authors write. “Upgrades would additionally enhance communications with taxpayers, which might assist the IRS present higher service and handle taxpayer expectations.”

The report goes on to make a number of suggestions for fixing these issues, together with modernizing IRS programs, enhancing its on-line instruments, and making it simpler for folks to confirm their identities. Crucially, the authors additionally advocate that Congress fund these endeavors.

For sure, the report solely checked out historic knowledge, and so it’s not a direct comparability to what’s occurring this 12 months. (The IRS is dealing with the dual burdens of sending out a brand new spherical of stimulus checks and coping with on-the-fly adjustments in an uncommon tax season.) However should you’re ready for a refund proper now, the report might provide a minimum of a small little bit of validation. You may test it out here.