Your Tax Return Is Still Being Processed
You’re not alone if you’ve got a 1099 but are still waiting on your refund. The IRS processes nearly a million tax returns each year. But the backlog is growing, and you may wonder how to keep up with it. Here are some tips to help.
It’s regrettable, but the IRS has finally admitted that they are experiencing a powerful system breakdown and will not be able to process your tax return within the standard time frame. They may even need to call in additional staff to make headway.
It would be wise for you and your loved ones to take steps now so as not to be caught off-guard by this unfortunate event. First, be sure that your savings account is healthy and fully stocked; you should also consider adding some money to an emergency fund just in case of any unforeseen circumstances.
You should also ensure a healthy backup of your essential documents in case of any mishap. For example, we suggest you back up your tax information onto multiple disks, ensuring that should one or more disks suddenly be corrupted, you will still have access to the information stored on the remaining drives.
As for other pending insurance claims, try to make sure that you understand the complicated details and complications of each set of claims and their respective deadlines. Again, this can save you from legal trouble when collecting those proceeds from insurers and third parties.
It would be best if you also tried to ensure you know all your credit card late payment fees and how long they are suitable. For example, a cash advance from your credit card at 24 hours will earn you money, but you will only be able to do that for three months; beyond that, the interest on the loan will start to accrue.
Medical insurance is also essential, so if you do not have it yet, you should get as much coverage as possible as soon as possible. In addition, it is a good idea to get daily updates about any changes in policy coverage or rates, or premiums so that you are kept up-to-date on the most critical components of your financial health.
Other issues need to be dealt with as soon as possible, so you don’t find yourself in problematic situations down the road. To name a few, make sure that you check your homeowner’s insurance to ensure it covers your property and assets appropriately. If it does not, you need to look into getting a different one.
And finally, make sure you check your car insurance by calling the auto insurance provider and asking to review their online claims system. If there are any problems with the information uploaded into their database, report them immediately so they can flag the claim and process it as quickly as possible.
Impact of COVID-19 Pandemic on IRS Backlog
The COVID-19 pandemic has affected people’s lives and tax returns, and the IRS is now dealing with the aftermath. As a result of the widespread closure of tax processing centers, there is now a historic backlog of tax returns. As of late May, the National Taxpayer Advocate (NATA) said this backlog had reached an unprecedented high.
Despite the ongoing challenges, the IRS is still determined to get through the backlog in the shortest possible time. A recent trip to the IRS Campus in Philadelphia by the Deputy Secretary of the Treasury and IRS Commissioner Charles P. Rettig revealed an aggressive plan to clear the backlog this year. The resulting shortage of resources and staff has forced the IRS to go above and beyond to serve the American people. Because of this, the Biden administration is committed to providing stable, long-term funding for the IRS.
The IRS responded to the backlog by hiring new employees. It also created a 700-person surge team and reassigned personnel to process new returns. Additionally, it announced that it would shift 700 employees to original and amended returns and expand taxpayer assistance. In addition to this, the agency announced online question-and-answer sessions to answer taxpayer questions.
In the meantime, the IRS is taking measures to increase its efficiency. For example, it has implemented an automated telework service that enables taxpayers to send documents to IRS employees via text messages. As a result, the program has reduced the time IRS employees spend phoning taxpayers.
Despite the COVID-19 pandemic, the IRS has a significant backlog. There are currently over 11 million unprocessed returns due for processing. The backlog also impacts the agency’s ability to provide COVID-19 relief payments. While the government is still dealing with the backlog, it has promised to clear it this summer.
Senators Bob Menendez and Bill Cassidy have introduced legislation to enact a COVID-19 fraud enforcement program. The president announced this decision in his State of the Union speech. The new director of COVID-19 Fraud Enforcement will lead the department’s efforts to combat the problem. So far, there have been charges against more than a thousand people for allegedly abusing taxpayer funds. In addition, there have also been 240 civil investigations into more than 1,800 individuals. This has resulted in over six billion dollars in alleged wrongful activity.
Tips to Avoid a Paper Tax Return
Filing electronically and avoiding paper tax returns will speed up your refund process. In general, the IRS processes returns within three weeks, but recently, some backlogs have caused delays. While it’s likely that the backlog will be cleared by the end of the year, there are some additional steps you can take while your return is processing. For example, check for errors and make sure you report the correct amount of your child tax credit and recovery rebate credit. In addition, if you file your return electronically, you should receive your refund within 21 days, but if you file on paper, it can take up to a month to receive your refund.
Make sure all your personal and bank information is correct. The IRS won’t be able to verify your return if you provide the wrong personal information. This includes your SSN, which you should make sure is correct. Also, double-check your bank account information because you don’t want your refund to end up in the wrong account!
Direct Deposit Dates for Tax Refunds
You can still claim your tax refund, even if the IRS has not yet processed it. You will receive an update from the IRS that will tell you the date by which your refund will be directly deposited into your bank account. However, you should know that your refund may be delayed if your bank rejects your request.
If your refund is delayed beyond the scheduled date, you should call the IRS and inquire about it. While the average refund processing time is 21 days, some returns are pulled for additional fraud/security checks, manual reviews, or special handling. This can result in a delay of several weeks. Fortunately, the IRS offers several methods for checking the status of your refund. One of these is the Where is My Refund (WMR) tool. The other option is to request a transcript of your tax return to see if it has been processed.
The IRS also offers an online tool to check the status of your tax refund. You can check this online once per day, and if the status is not correct, you can call the IRS. You should also check if you are eligible for the Recovery Rebate Credit. The amount you claim in this tax credit can affect the processing time.
Another option for receiving your refund is by receiving it on a prepaid debit card. This option can help you receive your tax refund quickly and conveniently. It is also safer and faster to receive your money than any other method. Paper checks can take days or even weeks to clear the bank. Some tax preparation companies even offer the option to receive your tax refund on a prepaid debit card.
The IRS has been warning taxpayers of delays in processing their tax returns. The wait time can exceed 16 weeks, even if the refund is e-filed. As of Jan. 8, the IRS had about 2.3 million unprocessed Forms 1040-X in its inventory. So if you want to receive your tax refund as soon as possible, you should file your return as soon as possible.