Will Your Tax Refund Be Delayed? IRS Holding 30M Tax Returns For Manual Processing

where is my tax refund

Where’s my tax refund? That is the question everyone is asking this year.

When you’re owed a refund from the Internal Revenue Service, the last thing you want is a long wait to get your money. Sadly, your tax refund could be delayed this year, because the IRS is holding almost 30 million tax returns for manual processing.

Why Is The IRS So Behind On Tax Season?

According to a new report, the IRS is facing their most challenging tax season yet. Between the $900 billion stimulus package signed in December and changes in tax laws and archaic IT systems, it has been a perfect storm. Not to mention that the IRS is still behind on 2019 tax season.

USA Today spoke with Erin Collins of the National Taxpayer Advocate.

“As one would expect, IRS employees are stretched thin working through the manual processing of these returns,” Collins said Wednesday. “So if a taxpayer’s return is pulled for manual processing, there will be delays.”

“Due to the late passage of the law, the IRS was unable to timely adjust its forms and computer systems before the start of the filing season to allow for systemic processing of returns where taxpayers elected to use 2019 income,” Collins said. “Thus, the IRS had to create a manual process instead.”

A perfect storm, indeed.

How Long Will It Take To Get Your Return?

The delay to receive your  has been roughly 6 – 8 weeks. During a normal tax season, it usually takes 3 weeks or less. This year you could be waiting twice the amount of time. Or more.

H&R Block broke down the situations where your return might be subject to manually processing.

For 2020 tax returns your refund might take longer if you:

  • Claimed a Recovery Rebate Credit and the amount you claimed does not match what the IRS calculates you are eligible for.
  • Applied the lookback rule to use your prior-year earned income to calculate your Earned Income Tax Credit (EITC) or the Additional Child Tax Credit.

How Can You Check On Your Return?

If you are looking to know when your 2020 tax return is coming, check out the “Where’s My Refund?” tool. All you need is your Social Security number or ITIN, filing status and your refund amount. And head over to H&R Block for more information on your 2020 tax filing and the possibility of a delayed return.

C. James

C. James is the managing editor at Wealth Gang. He has a degree in finance and a passion for creating passive income streams and wealth management.