Still awaiting a response from the IRS regarding the status of your tax return? Recently, the agency issued revisions regarding filing and processing. Here is the pertinent information.
The IRS has processed all paper and electronic individual tax returns received prior to January 2023. In addition, the agency asserts that mail is opened within normal timeframes. This means that all tax returns received for the tax year 2021 or earlier have been processed, assuming they were error-free and did not require additional review.
Unprocessed Returns
On May 13, 2023, the IRS had 4,2 million unprocessed individual tax returns; sure, this figure is greater than what was reported just a few weeks prior. This number comprises returns for the tax year 2022, 2021 returns that require review or correction, and returns for prior years that were lodged late.
2 million unprocessed individual returns require error correction or other special handling, and 2,2 million are paper returns awaiting review and processing, an increase of nearly 3/4 million since two weeks ago. These returns require special handling by an IRS employee, so it will take the IRS longer than 21 days to issue a refund in these instances.
Current Fiscal Year
Regarding individual tax returns received in the current year, the IRS will process refund-eligible returns first. Tax returns that indicate a tax liability are processed last, but the IRS wants to be paid. If a payment is mailed with the tax return, it is separated and deposited upon receipt.
Returns that require manual review due to errors will be processed in the order in which they were received. Some returns require a second review. If the agency requires additional information or verification that the return was sent, they will issue a letter. This could take longer than 120 days, depending on the speed with which you respond and the agency processes your return.
Identity Theft
Identity theft remains a concern for taxpayers. According to a recent Treasury Inspector General for Tax Administration (TIGTA) report, the Internal Revenue Service utilized 40% more filters than in 2022 to identify potential identity theft tax returns and prevent fraudulent refunds for the 2023 filing season. The tax returns flagged by these filters are withheld. If you receive a 4883C or 6330C letter from the IRS, it indicates that they need you to verify your identity and tax return before they can complete processing it. Follow the instructions on the letter, which may include online identity verification.
As of March 2, 2023, it reported that the filters had led to the identification of nearly 1.1 million tax returns with refunds totaling approximately $6.3 billion for further review. Additionally, as of March 2nd, the IRS had confirmed 12,617 fraudulent tax returns and prevented the issuance of $105.3 million in fraudulent refunds.
Read more: Where’s My Tax Refund 2023? A Comprehensive Guide in Tracking Your Money!
Tax Refunds
The agency issues the majority of refunds within 21 calendar days or less. However, if you filed your return on paper and are expecting a refund, it could take up to four weeks to process your return. Where’s My Refund? provides additional information. Information is available 24 hours after filing an electronic return for tax year 2022, three or four days after filing an electronic return for tax years 2020 or 2021, and four weeks after filing a paper return.
Additionally, you can contact the automated refund hotline at 800-829-1954. Please note that the hotline cannot provide refund status information for tax years other than 2022. According to the IRS, Where’s My Refund? is the only automated way to obtain updated information for prior tax years.
If the agency requires additional information to process your tax return, they will send you a letter. Due to the fact that the IRS is still processing your return or correcting an error, the agency cannot provide you with a specific date for your refund.
If you are eligible for a refund, filed on paper more than six months ago, and Where’s My Refund? does not indicate that your return has been received, you should resubmit your tax return, if feasible electronically. Tax returns must be signed (with fresh ink if submitted on paper) and must include all documents submitted with the original return.
However, if this particular set of circumstances does not apply to you, you should not submit a second tax return. This will bewilder the IRS. Check Where’s My Refund? or visit your Online Account for possible updates regarding the processing of your tax return.
Amended Returns
On May 13, 2023, the IRS had 1.43 million unprocessed Forms 1040-X, amended tax returns, an increase of more than 500,000 from the previous year. The agency processes these returns in the order they were received, and the current processing time can exceed 20 weeks. Don’t submit the same tax return more than once; otherwise, the accumulation will grow. Check Where Is My Amended Tax Return? If you want to know the status of your refund on an amended tax return, click here.
Payroll Statements
It had 2.1 million unprocessed Forms 941, Employer’s Quarterly Federal Tax Return, as of May 18, 2023. These tax returns are processed according to their receipt order.
As of May 17, 2023, there were approximately 879 thousand unprocessed Forms 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. Due to the fact that these returns are for taxpayers seeking adjustments, certain forms cannot be processed until the corresponding 941s have been processed. Even though not all of these returns involve a Covid-19 credit, such as Employee Retention Credits, the entire inventory is processed at only two locations (Cincinnati and Ogden) with personnel trained to review Covid-19 credit returns.
Read more: Social Security Benefits: Why Payments Late Might Be More Beneficial?