Why Is My IRS Tax Refund Delayed? | Updates & Solution

Why Is My IRS Tax Refund Delayed? | Updates & Solution. When taxpayers pay excess tax amounts to the government, they receive tax refunds. The refunded amount usually represents an interest-free loan that the taxpayers paid to the government. Many taxpayers think of a refund as a stroke of luck. However, individuals can qualify for tax refunds if they are eligible for refundable tax credits.

IRS Tax Refunds

People can avoid overpaying their tax amounts by correctly estimating their taxes while filing a return. IRS issues most of the refunds within 21 days. In some cases, the intended amount of refund can get delayed. This happens if the taxpayers have filed a paper return or there may have been some mistakes while filing the returns. In the case of paper returns, the refund can take up to 4 weeks to be processed.

Also, financial institutions may take some time to deposit the refunded amount into the bank accounts. However, if the time taken to issue the refunds has exceeded the stated time period, people can contact the IRS. Furthermore, people can use the “Where’s my refund?” tool to learn more about the status of refunds.

Why Is My IRS Tax Refund Delayed?

There can be a number of reasons for the delay of the refunds. The reasons can be incomplete information/form, or it can even be due to identity theft/fraud. The recommended option is to do e-filing. E-filing allows the IRS to receive as well as process the refunds much faster. Moreover, individuals can check the authorized website of the IRS to learn more about the reasons behind the delay in the Tax Refunds.

The reasons for IRS Refund Delay are as follows:

1. The taxpayer might have filed a paper return.
2. The tax returns filed by the taxpayer might need further review in general.
3. The form and the information included in the filing might be incorrect or incomplete.
4. The returns include a claim filed for an additional child tax credit or an earned income tax credit.
5. There might have been identity theft or fraud.
6. The individual was referred to the IRS by the bank due to suspicious activity.

Methods of Receiving Refunds

The refunds are generally received using the following means – Direct Deposit, TreasuryDirect, Traditional, Roth, or SEP-IRA, Savings Bonds, a Health Savings Account, an Archer MSA, Paper Check, and ESA. The most commonly used method is the Direct Deposit method, which allows the taxpayers to split their refund amounts.

How to Check IRS Tax Refund Status?

Individuals looking to receive their IRS Tax Refunds can use the “Where’s my refund?” tool. This significant tool is available on the authorized website of the IRS. Alternatively, taxpayers can also use the mobile application of the IRS – ” IRS2Go”. To check through the tool, follow these steps:

1. Go to the authorized website of the IRS.
2. Click on “Where’s My Refund?”
3. A tool will appear on the same page.
4. Now, select the tax year and enter the correct SSN.
5. In addition, select the filing status and enter the exact refund amount.
6. Click Submit.

The filing status includes the following options – Single, Married (Joint Return), Married (Separate Return), Head of Household, Qualifying Widow(er)/Surviving Spouse. The refund amount will be mentioned in the tax return. After submitting the mentioned information correctly, the IRS Tax Refund Status will appear. The status will be – Return Received/Refund Approved/Refund Sent. After checking their status, users can contact the IRS and share their issue details in order to get a solution.

IRS Refund Delay Updates & Solution

The updates regarding the delay can be learned through the authorized web portal of the IRS. If the taxpayers have sent their tax returns via mail, it will take some time to reach the IRS and be processed by them. Moreover, people can start checking their IRS Refund Status after –

• 24 hours of e-filing (2022 Return)
• 3 to 4 days of e-filing (2020 or 2021 Return)
• 4 weeks of paper filing.

Upon receiving the status of the refunds, the Where’s My Refund tool will direct the individuals to contact the IRS. However, if the tool does not redirect the individuals to contact the IRS, they can wait for a couple more days and see if they have received the refund or not. However, taxpayers should learn all the crucial aspects of the IRS Tax Refunds before contacting the IRS.

Conclusion

Understanding the reasons behind IRS tax refund delays and utilizing the available tools and resources can help taxpayers navigate through the process more effectively. By staying informed and following the necessary steps, individuals can ensure a smoother experience in receiving their tax refunds from the IRS.