Where is My 2020 Tax Refund?

Have you found yourself asking this? You are not alone. Unusually long delays in processing tax returns and refunds have many taxpayers past the point of frustration. With incorrect tax notices, unprocessed tax returns, and difficulties getting in contact with the IRS, people are asking, “what is going on?”

Did they forget about me?

The answer is no. The IRS is aware of the delays, but one of the most irregular years in recent history has left the IRS in a bind. Between the pandemic work restrictions, issuing stimulus checks and late year tax law changes, the IRS is left trying to catch up on processing millions of returns and unopened mail. IRS filing statistics show that as of June 11, more than 136 million refunds had already been received for tax filing year 2020, leaving around 12 million returns going down the processing line. This does not include the processing of amended returns, returns filed by paper and all the unopened taxpayer correspondence. The IRS is hoping to catch up sometime this summer.

What is causing the delay?

There are many reasons that things are moving much slower this year. The IRS has been underfunded for several years, which results in workplace declines and shortages and this shortage has been magnified by the current environment. According to the IRS, the Recovery Rebate Credit (RRC), Earned Income Tax Credit (EITC), and Child Tax Credit are the top reasons for delays. These credits are creating situations in which returns require individual attention from IRS employees, which means they must be checked by hand. Other reasons for delays include identity theft, fraud, and missing or incomplete information.

If more information is needed to complete your return, the IRS will contact you by mail. Refunds are normally issued within 3 weeks from the date of receipt. It is currently taking about 10 weeks from the date of receipt by the IRS to hand verify a return.

Why won’t they answer me?

According to IRS Commissioner Charles Rettig, the IRS reported that they were receiving 1,500 calls a second during the busiest part of this year’s filing season, which meant only 2% of calls were being answered. Many of the calls were left on hold or disconnected.

What can I do about it?

There are various tools in place for contacting the IRS for further information about your tax refund and your amended refund. See below for suggestions on what methods are effective.

  • Online resources
    • Instead of calling the IRS, it is recommended that you use the Where’s My Refund? and Where’s My Amended Return? features. These tools are updated once daily and generally reflect the same status update a revenue agent could give you by phone. These website features will help you track your refund and amended returns and save you time. The IRS Frequently Asked Questions is also a place to start.
  • Taxpayer Advocate
    • The Taxpayer Advocate Service (TAS) is another option. TAS is an independent organization within the IRS that ensures that every taxpayer is treated fairly and that every voice is heard. If your refund has been delayed more than 18 weeks, this organization can be a viable option to get answers.
  • Call
    • Calling the IRS is always an option, but don’t be surprised if you don’t get through. Calling first thing in the morning can be a good plan, but avoid peak times like over lunch hour. The assistance number to call is 1-800-829-1040. If using this method, be ready to be on hold for a long time.
  • Contact your tax professional
    • Tax practitioners do have a hotline set aside just for them.  As you can imagine, your tax professional will often be unable to reach a Revenue Agent for the reasons listed above.

Your advisors continue to advocate for acceptable and reasonable processing times and customer service from the IRS through our professional associations. If you have further questions regarding your tax refund or amended refund, contact an Adams Brown advisor today.