The Internal Revenue Service is holding 29 million returns for manual processing — delaying refunds for many — because of pandemic-related law changes, processing errors, and fraud detection.
More than 8 million individual tax returns are in suspense status because of their stimulus payment or the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), two credits that help lower income.
On some returns, there was an inconsistency between the stimulus payment the taxpayer received and the amount claimed on their return as Recovery Rebate Credit.