The Internal Revenue Service is providing an update on the status of the tax refund delays that plagued the agency this season.
In late January, the IRS sent an email to tax professionals warning that tax refunds could be delayed a week this tax season because of new anti-fraud safeguards (see IRS Warns of Tax Refund Delays). The IRS had fine-tuned its identity theft filters to prevent the growing trend of tax refund fraud. Many taxpayers who wrote to Accounting Today said they were experiencing much longer delays than a week.
The IRS also had problems with its “Where’s My Refund" tool giving a different date whenever taxpayers checked up on the status of their refunds, and last month the page told many taxpayers that it had no information on the status of their tax refunds (see IRS Experiences Further Tax Refund Delay Problems).
Accounting Today checked in with the Internal Revenue Service to find out the latest status of the delays after learning that the IRS was approximately 2 million tax returns behind last tax season as a result of the identity theft safeguard it had put in place, according to Ohio TV station WTOL.
In response, IRS spokesperson Dean Patterson sent an update from the IRS on the latest situation.
The IRS noted that its processing systems continue to be up and running. “Earlier issues in January and February with IRS systems and the ‘Where’s My Refund’ tool have been resolved,” said the IRS. “In the first few weeks of the filing season, there were two different issues that came up that resulted in longer refund cycles than taxpayers may have expected. Those issues only affected a subset of taxpayers filing returns. Both issues are resolved. Taxpayers who filed after February 13 have not experienced delays.”
The IRS contended that the vast majority of taxpayers filing electronically and choosing direct deposit have continued receiving refunds in the 10-21 day timeframe announced at the opening of the 2012 filing season.
“Overall, tax refunds are running ahead of last year,” said the IRS. “Through late February, more than 45.2 million refunds have been issued this year, compared to 45.1 million for the comparable period last year.”
The IRS also reminded taxpayers that the refund time frames provided by “Where’s My Refund” and tax providers are projected time frames and are subject to revision.
“Many different factors can affect the timing of the refund after the IRS receives the return for processing,” said the IRS. “The IRS is providing additional screening for fraud this year before issuing refunds, but the vast majority of taxpayers can still continue to expect to receive their refunds in a timely fashion.”
13 Comments
Sunshine, that is just too long... I finally had to get a Tax Advocate last week because this has caused a hardship for me. Still haven't received my refund, but at least I've got one more person working on it ;)
Posted by: Billiegirlsoco | March 28, 2012 3:52 PM
Report this Comment
I efiled my tax return Jan. 17 and got accepted Jan. 18 and still haven't received my refund. The WMR says, "We have received your return and it is being processed." I call to ask someone about what's going on and I get no answer. I haven't received anything in the mail. It has been 10 weeks and have no clue what is going on with my refund. If the government is going to audit me, they need to let me know instead of giving me the run-around. It's frustrating! They need to tell me something other than, "We see no problem with your taxes. You haven't received anything in the mail? It could take a long, long time if they going to audit you." What kind of answer is that for me?
Posted by: sunshinem23 | March 28, 2012 12:58 AM
Report this Comment
leannwood, the IRS did update its transcript delivery system earlier this year, though it's supposedly going to be more efficient this year, not less. Here's a link to one of the articles we posted about it:
http://www.accountingtoday.com/news/IRS-Release-New-Transcript-Delivery-System-Monday-61358-1.html
Posted by: MikeCohn | March 6, 2012 12:57 PM
Report this Comment
My return was excepted 02/10/2012. I am not expecting a refund. I had to pay in. I am in the process of buying new home and need my transcript ASAP. I've called IRS everyday and I get a differant answer. Some are saying that my taxes will not be processed untill mid may because IRS processes refund returns first and people like me must wait until all refunds are done. Dose anyone know if this is true or not? I'm about to lose the house I'm closing on if I dont get transcript.
Posted by: leannwood | March 6, 2012 12:41 PM
Report this Comment
It has been 35 days since e-filing, IRS accepted next day. Where's My Refund status said to expect my refund on or before 2/21. When 2/21 passed, that message changed to "return has been received and is being processed" This message has not changed for the past 14 days...
Posted by: Billiegirlsoco | March 6, 2012 10:56 AM
Report this Comment
Obviously, this year the refund payment schedule is out the window. IRS' printed refund schedule says if you file by Feb 29, you SHOULD get a refund on the 7th of March. The reality is more like March 21, and that is what I'm telling all my clients. And advise that they change their behavior about finances is ignored. I've come to accept that people will not change until forced to. I'v been using this delay glitch to persuade my clients to come in for a free budget, and a chance to take my Money Control class. Making that lemonade.
Posted by: angimercer | March 5, 2012 12:33 PM
Report this Comment
This, and many other reasons, is why I have been telling my clients to do Tax planning. CA a couple of years ago (or was it last year, time flies!) issued OIU's to people. I've been telling my clients (and following this advice myself) that having a small refund isn't bad, but paying in (without paying fees/interest) is a lot better. Getting a refund means you overpaid and are getting 0% interest on the "savings account" whereas at least you can invest in a savings (on-line) for near 1%.
Now there are some people who giving more money to the IRS is a good thing, where they will spend any amount they basically have/make. I personally try not to get many of those clients... why? Because they have a hard time paying me! People need to start informing and urging their clients to stop paying in big and expecting large refunds for taxes, it will come back to bite them (as it has many this year who expected to get it sooner).
Posted by: Zeo | March 5, 2012 8:42 AM
Report this Comment
If the taxpayer claims an Earned Income Credit or a Child Credit these refunds maybe delayed while the information is verified.
Posted by: paulajrussell | March 5, 2012 7:56 AM
Report this Comment
I filed my electronic return on 2/14/12. It was accepted 2/15/2012. I was informed I'd have it by 2/22, tbut the IRS website says 2/28/12. But as of today 3/3/12, still no refund, smh!! This is ridiculous. But all I can do is wait I guess. I think theres more going on than they're telling us. Hopefully, they haven't run low on money. I guess I'll wait with high expectation to see it anyday now.
Posted by: Willsgyrl | March 3, 2012 7:37 PM
Report this Comment
I efiled a tax return on 2/6 for a client. My program gave an expected date of receipt as 2/17. When it was not received, I checked wheres my refund. At first it said that the date of refund would be 2/27. Still not received. Now Where's My Refund only says, return has been received and is being processed. It has been 4 weeks as of Monday since it was efiled. Hopefully the 21 day rule will apply in this case. I have been doing taxes for 15 yrs and have not had any problems like this before.
Posted by: katslim83 | March 2, 2012 6:48 PM
Report this Comment
Correction to my comment, I was given an expected refund date of 2/15 from my tax preparer, and 2/21 from Where's my refund status...
Posted by: Billiegirlsoco | March 2, 2012 3:57 PM
Report this Comment
I filed 2/1/2012, was accepted 2/2/2012. Given expected refund date of 1/15 from my tax preparer, 1/21 from Where's my Refund status, it is now 3/2/2012 and I have not received my refund, and now the Where's my refund status has changed to "return has been received and is being processed" I have received no letters, no other information...
Posted by: Billiegirlsoco | March 2, 2012 3:41 PM
Report this Comment
We filed our 2011 tax return online with direct deposit February 12th. It was accepted February 13th and still haven't received it. Online it says we should get it February 21st...well, it's March 2nd.
Posted by: jaxton | March 2, 2012 3:33 PM
Report this Comment
Add Your Comments...
Already Registered?
If you have already registered to Accounting Today, please use the form below to login. When completed you will immeditely be directed to post a comment.
Not Registered?
You must be registered to post a comment.