What’s Taking So Long?

One of the top questions we hear when we work with clients at Adams Accounting Solutions is this: “Why is my tax refund taking so long?”

It’s a valid question. Once you’ve gone through the angst associated with getting your tax return finished and filed, you’re ready for some good news. And when your accountant tells you that you have a refund coming, it’s cause for celebration.

Weeks go by. No check. No direct deposit. What on earth is taking so long?

Slow Going Ahead

The IRS typically gets backed up during tax season as it’s bombarded with thousands of tax returns to be processed. Many of these returns don’t involve refunds, but many of them do. It takes a massive number of worker-hours—not to mention gallons of coffee—to process all the paperwork and electronic forms that come in. Add a pandemic to the mix, and even the most well-oiled machine slows to a glacial pace. That’s where we’re sitting right now.

A year ago, the IRS had to completely shut down operations to protect the health of its workers as coronavirus swept the country. When they reopened, it was in a much more limited capacity. Despite last year’s tax filing extension, the returns piled up, resulting in a considerable backlog and producing a snowball effect.

As of March 12 this year, according to an article in The Washington Post, the IRS was sitting on 6.7 million tax returns to be processed. All this as they struggle to keep up with mounting priorities that include issuing another round of stimulus checks and implementing tax code changes from coronavirus relief packages. 

And That’s Not All

New issues are also popping up for the IRS to deal with. Many people who didn’t receive the right amount in their stimulus checks are now filing for the additional money. Also, some low-income tax filers are now eligible for more tax credits than usual. The IRS is having to manually review many of these tax returns for accuracy.

The Good News

The good news is that the IRS is required to pay interest on refunds issued to taxpayers more than 45 days after the filing deadline. If you fall into this category, don’t despair. You’ll eventually get your refund—with interest.

In the Meantime…

If you’re due a refund this year, try to be patient. You’re not the only one in this situation, and it’ll come eventually. Try being grateful that you don’t work for the IRS. It may help change your perspective.

If you have questions in the meantime, give us a call at Adams Accounting Solutions. While it gets crazy in our office sometimes, we still provide the personalized service our clients expect from us. Call or stop in anytime!