Why Your Refund Might be Late
Even if you E-file your income tax return, a refund may take several weeks to process. The IRS just released IR 2022-65 which details some of the reasons why it takes extra time.
The IRS normally issues a refund within 21 days after the return is accepted via E-file. However, there are many cases where a manual process will result in a delay of up to 14 weeks or more. Some of the most common delays relate to:
- A return with errors,
- A return with incomplete information,
- An issue with identity theft,
- A child tax credit or recovery rebate credit corrections,
- A claim for earned income tax credit (which many more single taxpayers will have on their 2021 return due to income tax changes from last year).
The quickest way to get a refund is to E-file and use direct deposit. But as mentioned above, that does not always result in a timely refund.
The IRS suggests checking the “Where’s My Refund?” tool on their website. It is generally available 24 hours after you get acknowledgment that they have received the return. However, if you paper file the return, you should wait at least 4 weeks before using the tool.
An IRS representative can only research the status of a return after the later of:
- 21 days after E-Filing the return,
- Six weeks or more after receiving a paper filed return, or
- “Where’s My Refund?” tells you to contact the IRS.
But many of you know that calling the IRS is a very frustrating process.
If you have not received your 2020 refund yet, you should still file a 2021 tax return or ask for an extension. In many cases you may be required to report your prior-year Adjusted Gross Income to E-file. If you are still waiting for the 2020 return to be processed, the IRS indicates you should enter $0 (zero dollars) for last year’s AGI.
We have less than 4 weeks to go before the 2021 tax season ends. We have an extra 3 days this year with the due date falling on April 18. This is by far the busiest time of the year for a farm tax CPA but it is also our “harvest” time.
For all of the tax preparers reading this post, I wish you a successful remainder of tax season and remember to tax some time off to recover (I will be golfing on April 19 for sure).
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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