If you’ve been waiting for over 21 days to receive your refund, you’re not alone. The IRS has been experiencing slower processing times for tax returns. However, there are several reasons why your return may still be processing. Whether it is a matter of error or a technical glitch, you should be able to receive your refund within the next few days.
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Reasons why your tax return is still being processed after 21 days
While the IRS tries to process tax returns within 21 days, the fact remains that there are many reasons why your return may not be ready yet. For example, it could be because you did not include all the required forms, or it was flagged for identity theft or fraud. Or, it could be because the social security number you provided on your return was already submitted for a previous tax year. If you’re not sure why your tax return is taking longer to process, check out our list of reasons below.
Another reason why your return may be taking longer to process is because the IRS is currently doing a review of your return. This is a normal process that takes time, but if you want to speed up the process, file your taxes electronically instead of through the snail mail. By doing so, you will halve the time it takes to process your return. When you file electronically, you eliminate the need for manual data entry.
IRS issues most refunds in less than 21 days
The IRS issues most refunds in less than 21 business days, with some exceptions. This year, for example, more than 70 million refunds were issued, totaling more than $222 billion. The time required to process your refund will depend on the complexity of your tax return. If your return is not complicated, the IRS will issue your refund quickly and efficiently.
If you filed your tax return by mail, your refund could take up to six months to reach you. The IRS has a backlog of millions of paper returns. This is one of the biggest reasons why you are seeing a delay in processing your refund. If you are still waiting for your refund, you may need to file another return.
Usually, the IRS issues your refund in less than 21 days if you file electronically with direct deposit. However, your refund can take longer than this if your return contains errors or requires more review. It may also take longer if you are the victim of identity theft or fraud.
COVID-19 has caused slower processing times for tax returns
The IRS has announced that it is experiencing slower processing times for tax returns after the deadline of May 17. As a result, the filing deadline for individual taxpayers has been extended to July 15. However, the impact of COVID-19 was much wider than just the new deadline. In March, the IRS closed its facilities for several weeks. In addition, it has announced that it will waive the penalties for tax payers who clear their taxes by the end of the first quarter of 2021.
The IRS is struggling with staffing and antiquated technology, which has caused the backlog to increase significantly. Even before COVID-19, there were over 20 million paper returns on the backlog. That backlog began to grow and increased after COVID-19 was implemented. Paper returns require every digit to be manually keyed into IRS systems. As a result, tax refund money may be delayed, making many taxpayers nervous.
Despite the slowdown, the IRS has still announced that it will begin processing tax returns on January 24. The agency reports that there are more than six million individual tax returns in the backlog as of December 31, which is nearly twice the number of unprocessed returns last year. This is a growing concern for taxpayers who expect a refund within 21 days. While most taxpayers should receive their refunds within that time frame, the backlog has left some taxpayers with wait times of up to six months or more.
IRS does not have your tax return
If you have not received your tax refund after 21 days, you need to contact the IRS. There are a few ways to do this. The first step is to call the IRS 800 number. The phone line may be busy because of high call volumes, but once you get through, press 2. Choose the option for personal or individual tax questions, and press 2. You should be transferred to a live agent.
If you have received a notice informing you that your refund will be delayed, do not panic. There are several reasons for this. One reason is because the IRS has received far more returns than it was expecting. When you call the IRS, they will explain the situation and let you know if you should expect a delay in receiving your refund.
Depending on the type of refund you are entitled to, it could take more than 21 days to receive it. Other reasons for a delay in a refund include math errors, identity theft, or an unusually high volume of refunds. If your refund hasn’t arrived after 21 days, you may need to contact the IRS and request a refund.
