According to the IRS and Thomson Reuters, IRS delays are still prevalent. The most common taxpayer concerns include 2020 tax return processing and mailed correspondence. The IRS states:
- They still have millions of tax returns in the processing pipeline. For refunds that could not be issued in 2020 because the tax return is being corrected, reviewed or awaiting correspondence from a taxpayer, the refund will be issued as a paper check in 2021 per our normal processes. Taxpayers are encouraged to continue to check IRS’s Where’s My Refund website for their personalized refund status.
- With respect to taxpayer answers to IRS letters or notices – “While we are opening mail within our normal timeframe, processing these responses is taking longer than usual due to social distancing and resource restrictions.”
- With respect to taxpayers who have sent checks to IRS – “If you mailed us a check, it may be in the backlog of unopened mail. We’re opening mail as quickly as possible and expect to process any checks within 60 days of their arrival. We’ll apply your payment on the date we received it, not the date we processed it. To avoid penalties for a late payment, don’t cancel your check; [, and] make sure you have funds available to cover it.”
If you are still waiting for a refund, you can use the Where’s My Refund tool to check its status.