For many early tax filers, the wait for a tax refund has far surpassed the typical 21 days or less. For some taxpayers, the wait has already been six to eight weeks and counting. It is important to note that the Internal Revenue Service (IRS) continues to hold nearly 30 million returns for manual processing due to issues with tax credit fraud.

Many American’s rely on their refunds to pay big bills

This year, the tax deadline was extended from April 15th to May 17th due to the pandemic. However, many Americans still filed early because they rely on their refunds to pay for essential items, such as rent, electrical bills, and groceries.

Why is my refund delayed?

Several issues have contributed to refund delays this year. One factor is a backlog of 2019 paper tax returns that the IRS was unable to process after closing its offices during the pandemic during the 2020 tax season. In addition, the IRS has been addressing many cases of fraudulent activity regarding 2020 tax credits.

Tax return delays could also occur in the following situations:

  • Tax returns that require a correction relating to the Recovery Rebate Credit, aka ‘stimulus money.’
  • Tax returns where the IRS needs to validate information relating to the Earned Income Tax Credit or the Advance Child Tax Credit.

Contact Us for Assistance

If you have any questions about tax refunds or would like tax preparation assistance, please contact our tax professionals at The Innovative CPA Group at 203-489-0612 or via our contact form.