Federal tax refunds delayed as IRS deals with backlog, stimulus payments
Tax experts say some refunds are taking months to be issued.
JASPER COUNTY, Mo. – “This year, it definitely has been a weird one,” says Trent Dunlop at Liberty Income Tax.
From starting a month later than normal to deal with a backlog, to issuing stimulus checks during tax season, the IRS has been slammed.
“Some people are getting their return months later,” says Dunlop. “So, it’s been pretty slow.”
At the end of March, the IRS still had around 2 million returns from 2019 to process — a backlog created by the pandemic. Another big challenge from this season has stimmed from the second stimulus check because a lot of people who didn’t get it are claiming that on this years tax returns. That’s slowing down the process even more.
“They’re gonna go through and put you in a manual review process, which means an actual human being is gonna review your return. And it kind of slows things down a little bit,” explains Dunlop. “So the IRS is kinda stackin’ up.”
If you are the one of many who are waiting for their federal return, you can check its status at https://www.irs.gov/refunds using the “Where’s my refund” tool. Tax experts say if the tool says your return is being processed, then you don’t need to do anything… just wait for the IRS to get to your return.
“If you’ve already filed and you’re still concerned, go back through your return and just check to make sure everything is correct. If you haven’t filed yet, I would highly recommend it so you can get in that cue,” says Dunlop.
But residents aren’t the only ones feeling like they’re in limbo. CPA Andrew Jordan, C.O.O. of Finance Pal, says there are a lot of uncertainties for business owners as well. While the filing deadline was extended to May 15th, businesses still have to submit tax estimates by April 15th. Also, the IRS has said that businesses that received PPP loans will still be able to make deductions for expenses that were covered using a loan. But, some state’s still haven’t decided.
“Or, they’re in a state like Missouri where it has been decided. But, we’re still waiting to hear what they’re going to do. And if they don’t fix it, then that might be another unexpected tax hit for small business owners,” explains Jordan.