Tax Refund Delays: Reasons Why Your IRS Money Hasn’t Arrived Yet

This story is a part of Taxes 2022, CNET’s protection of the most effective tax software program and every thing else it is advisable to get your return filed rapidly, precisely and on-time.

Submitting your tax return electronically with direct deposit is the easiest way to get a fast tax refund. The IRS contends that these taxpayers who do will obtain their refunds in about 21 days. If you happen to’ve filed your return, and it has been longer than three weeks with no refund, there could possibly be an issue or you might have included a kind in your return that requires further processing.

In a March 23 bulletin, the IRS famous that some tax refunds can take a bit longer than the anticipated 21-day interval and in addition warned taxpayers “to not depend on receiving a refund by a sure date, particularly when making main purchases or paying payments.” 

You must also bear in mind that it could possibly take the financial institution a number of days to course of the IRS deposit earlier than it turns into obtainable. On-line cost providers like Venmo and Money App skip processing delays and present your cash two days earlier.

Listed here are 9 of the most typical causes IRS cash is delayed this yr. For extra, discover the greatest free tax software program, see find out how to observe your refund to your checking account or your mailbox, and learn to create a web based IRS account.

Your tax return has errors or is incomplete

While you file your tax return, it is vital to cross-check any data you’ve got included to verify it is correct. For example, do not combine up the numbers of state taxes withheld with federal taxes withheld. Earlier than you submit your taxes to the IRS, merely take a re-examination to repair any potential errors and ensure you’ve stuffed out every area.

Additionally, if you happen to acquired little one tax credit score funds final yr, be certain that the quantity on Letter 6419 matches the quantity you acquired. If an incorrect quantity is entered, the IRS might want to additional evaluate your tax return, which the company says will lead to an “in depth delay.”

Observe that if there’s an issue that must be mounted after you submit your return, the IRS will first attempt to proceed with out contacting you. Which means it could possibly be days or even weeks earlier than you understand there’s an issue.

You owe the IRS cash

If you happen to owe again taxes to the IRS, the company could take some or your entire tax refund to repay that debt. In case your refund accommodates extra money than you owe, you will obtain the remaining stability through direct deposit or verify within the mail, but it surely could possibly be delayed. Taxpayers whose refunds are utilized by the IRS to cowl current cost obligations ought to obtain a CP49 discover within the mail. 

Even if you happen to do not owe the IRS cash, the company can maintain your tax refund cash you probably have different money owed to state or federal companies. The Treasury Offset Program allows the IRS to take all or a part of your tax refund to pay obligations reminiscent of little one help, state taxes or unemployment compensation repayments. Such money owed might delay the arrival of your remaining tax refund or remove it fully.

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Your banking information is incorrect

Have you changed bank accounts since you last filed your taxes? If so, pay close attention to what the direct deposit information says when submitting your return this year. If you accidentally forget to update it with your new direct deposit details, your refund will be sent back to the IRS. This will likely result in a paper check being mailed to your house, which could take several weeks longer to arrive.

You filed a paper tax return

This year, the IRS is encouraging taxpayers to file electronically and set up direct deposit to get their refunds back more quickly. With mail delays, it could take a while for the IRS to receive your return in the mail and even longer to issue a paper check. 

Filing your return online instead of through the mail is more important than ever this year to avoid refund delays, the IRS says. Instead of a paper tax return, use one of these free online tax filing services so you don’t have to wait to receive your money.

You didn’t properly enter your stimulus payments

In 2021, most Americans received a third stimulus check payment related to the COVID-19 pandemic. While that money is non-taxable, it needs to be reconciled on your tax return if you are claiming the recovery rebate credit.

In recent testimony to the House Ways and Means Committee, IRS Commissioner Charles P. Retting said that in 2020, the IRS “received far more than 10 million returns” where taxpayers failed to properly reconcile their stimulus payments with the amounts entered for their recovery rebate credits. Those returns require a manual review and create lengthy delays.

If you plan to claim the recovery rebate credit on your tax return, learn how to avoid this error using IRS Letter 6475 or your online IRS account.

You filed Form 8379, Injured Spouse Allocation

It sounds painful, but this form has nothing to do with physical injuries or disabilities.

When a married couple filing jointly owes a federal debt, the IRS may seize their tax refund in order to offset the money that they owe. If only one half of the couple owes money, the other partner can be considered “injured” and request at least part of the expected tax refund. Enter IRS Form 8379.

While not as common as some of the other causes, this tax-refund delay is significant. According to the instructions of Form 8379, taxpayers filing the form should expect up to 14 weeks of processing time, or 11 weeks if filing electronically.

The IRS suspects identity theft

If the IRS flags a tax return for having a possible chance of identity theft, the agency will hold your refund until your identity is verified. When that occurs, you’ll likely receive a 5071C letter that provides instructions for proving your identity. If your tax return is legitimate, don’t panic — an IRS letter doesn’t mean there is proof of identity theft, merely a suspicion.

Taxpayers can verify their identity on the IRS website, which currently requires creating an ID.me account, or by calling a dedicated phone number listed on the IRS letter. If those methods fail, you’ll need to schedule an in-person appointment at a local IRS office.

One method for avoiding identity-theft-related delays is to create an “Identity Protection PIN” or IP-PIN. This unique six-digit ID is known only to you and the IRS and prevents anyone else from filing a return in your name. The IP PIN will only last for one year — you’ll need to create a new one next tax season if you want the same level of identity protection. You’ll need an ID.me account to create an IP PIN online, although it is possible to acquire an IP PIN using IRS Form 15227 (PDF) and a telephone interview or in-person appointment.

You filed an amended tax return

It can happen to anyone — you forgot a form or a major deduction or you accidentally picked the wrong filing status. If the change to your return is big enough, you’ll want to file an amended return. The IRS allows anyone who files their tax return electronically to also e-file their amended return, but only for the current year.

If you do file an amended return, you’ll need to practice patience. The IRS warns that amended returns can take up to 16 weeks to be processed. Before filing an amended return, you may want to wait to receive the tax refund from your original return. The IRS can often correct small errors and adjust your tax refund accordingly. The agency provides an online tool for helping you determine if you should file an amended return.

Your return needs further review

As mentioned above, if you see a message saying that your tax return needs further review by the IRS, you can expect your refund to arrive later than the average three weeks. For instance, if you receive a CP07 Notice, it means the IRS has received your tax return and is holding your refund until it completes a more thorough review. You might get this notice if you’re claiming treaty benefits or deductions on the Schedule A section (PDF) of your taxes.

If the agency finds no issues, your refund could arrive within six to 12 weeks, assuming no taxes are owed. If the IRS does find issues with your return, it’ll send you a notice with instructions on what to do within that same period. That means you’ll get your refund months later than you anticipated.

For more information, here are the most important dates and deadlines for filing your taxes. Also, here are 10 tax changes that could affect the size of your refund, and 13 tax deductions and credits to boost your refund.