Friday, November 15

Americans should expect refunds for 29 million raw manual returns


Low-income taxpayers cannot receive their refunds because the IRS has millions of withheld returns; National Taxpayer Ombudsman calls for transparency and more communication regarding the status of refunds

The delay of refunds is affecting taxpayers.

Photo: Tima Miroshnichenko / Pexels

Jorge Vázquez

The Internal Revenue Service (IRS) is facing a number of challenges : a high volume of tax returns 2020 that require manual processing; accumulation of paper declarations 2019 without processing; orders from Congress to issue economic stimulus checks; provide other relief to taxpayers during the pandemic; and limited resources.

All this is causing delays, explains the blog of the National Taxpayer Defender.

The IRS is withholding 29 million returns for manual processing , delaying reimbursements for many Americans who are hopeful of receiving them to meet the economic commitments that were accentuated by the pandemic.

More than eight million individual returns (Form 1040 or 1040 – SR) are in a state of suspense awaiting manual review and processing.

They are also waiting 5.3 million individual paper declarations of 2019 Y 2020 ; 4.7 million individual returns with processing errors or fraud identification issues that require responses from taxpayers; Y 11 millions of trade and other returns.

All this gives a total of more than 29 millions of returns for manual processing that the IRS must resolve . As expected, says the National Taxpayer Ombudsman, “employees are forced to work on manual processing of these returns, so if a taxpayer’s return is extracted for manual processing, there will be delays ” .

In March the IRS the IRS explained that tax refunds could be delayed for a variety of reasons, including:

Errors in returns

– The Earned Income Tax Credit (EITC) claim or the Additional Child Tax Credit (ACTC)

– Possible problems of identity theft or fraud; or

Delays between when the IRS issues the refund and the time the refund is deposited directly into the taxpayer’s bank account.

The IRS advises taxpayers to check the status of their return online, but that often provides insufficient information, says the Taxpayer blog, “as these tools only tell taxpayers that your return is being processed, but they do not provide details on whether they need to provide additional information or when the refund will be delivered . ”

The IRS must provide taxpayers with information more specific so they know what to expect and, where possible, can make adjustments to manage their finances, “Specifically, To alleviate taxpayer concerns, the IRS should be more transparent and specific regarding the status of taxpayer refunds ”said Defender of the National Taxpayer.

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