April 21, 2021
Dear Clients, Business Associates and Friends:
Typically the IRS processes electronic returns and pays out the tax refund within 21 days of receipt.
However, the high volume of 2020 tax returns being filed daily, the backlog of 2019 paper tax returns, IRS resource issues, and IRS technology problems are causing delays in issuing the tax refunds. This is due, in part, to the IRS’s need to manually verify the large number of Refund Recovery Credits, as well as the Earned Income Tax Credit, Advanced Child Tax Credit and 2019 adjusted income lookback claims.
Currently, the vast majority of processing delays are a result from tax returns that are not loaded onto the IRS system or are in “suspense” status awaiting IRS action. As of March 25, 2021, over 6 million electronic returns have been “suspended” due to issues requiring manual processing or return inconsistencies. Until the returns are loaded into the IRS system, the IRS cannot see or access the return information so if you call them, they cannot provide any further insight on the status of your tax return.
The Taxpayer Advocate Service is working with the IRS to identify how taxpayers can use the Where’s MY Refund website to determine the status of their return.
In conclusion, until the IRS resolves all of the issues stated, taxpayers just need to sit back and wait for their refunds as there is nothing else that can be done by WZ or the taxpayer, to accelerate the refund process.
** IF YOU HAVE MISSED ANY PREVIOUS WZ WEBINARS OR COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO
OUR WEBSITE
Best,
WZ Partners
