IRS Tax Refund Update August 2021 | Still Processing? | Why Tax Refund Delays? - YouTube

Channel: Noel B. Lorenzana, CPA - Ask An Accountant

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I wanted to make a quick video to let you
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know about the latest tax refund update by the IRS.
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If you're an individual and you're still
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waiting for your IRS federal tax refund, this video is for you.
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Later on, I'll show you how you can have a tax professional.
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Call the IRS on your behalf.
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Hi, I'm Noel Lorenzana and I'm
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an accountant, according to the latest IRS news bulletin.
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The IRS is opening mail within normal
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timeframes and that all paper and electronic individual tax returns
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received prior to April two thousand twenty one have been processed.
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That is, if the return had no errors or did not require further review.
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So if your refund is delayed,
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then your return either had errors or requires further review.
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At this time, the IRS had fifteen point
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six million unprocessed individual tax returns.
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This figure includes tax returns with resulting refunds,
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which are delayed because they need to be manually reviewed.
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Unprocessed individual returns include tax
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year two thousand twenty returns, such as those requiring correction due
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to the recovery rebate credit, which is claiming stimulus payments not
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received, and those returns requiring validation of two thousand nineteen income
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used to figure the Earned Income Tax Credit and additional child tax credit.
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This additional processing does not require the IRS to correspond
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with taxpayers, but does require special handling by an IRS employee.
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So in these instances,
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it is taking the IRS more than their usual 21 days to issue any related refund.
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And in some cases,
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this additional processing work could take 90 to 120 days, according to the IRS.
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But in reality, we all know what's taking even longer than that.
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In many cases,
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if as a result, a correction is made to any item
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previously mentioned, the IRS will send taxpayers an explanation
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by mail or through their system, such as where's my refund?
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So how long will you need to wait?
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The IRS claims to understand
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the importance of timely processing of tax returns and refund issuance.
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They say they have processed all error
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free returns received prior to April twenty twenty one and continued to work
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the returns that need to be manually reviewed due to errors.
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The IRS says that tax returns are opened
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and processed in the order that they are received.
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As the return is processed,
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whether it was filed electronically or on paper, it may be delayed because it has
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a mistake, including errors concerning the recovery rebate.
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Credit is missing information or there are suspected identity theft or fraud.
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If they can fix it without contacting you, they will.
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If they need more information or need you
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to verify your identity, they'll send you a letter in the mail.
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The resolution of these issues could take
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ninety to one hundred twenty days, depending on how quickly and accurately
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you respond and the ability of IRS staff working under social distancing
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requirements to complete the processing of your return.
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So what should you do now?
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In most instances, no further action is needed.
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But you can check where's my refund
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on the IRS website or you can view your online account.
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If you filed electronically and received
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an acknowledgment, you don't need to take any further action other than promptly
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responding to any requests for more information.
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If you file a paper return, you can check where's my refund on the IRS website?
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If it tells you they have received your
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return or are processing or reviewing it, then they are processing your return.
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But it may be under review.
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They say they are working hard to get through the backlog.
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Also, they ask you don't file a second return or contact the IRS about the status
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of your tax return since they are already very busy.
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As a side note, don't call your tax preparer complaining
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because he or she has no more information than you have and it's not their fault.
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The blame lies with the IRS.
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Call your state representative if you need to complain to someone.
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I strongly believe a congressional hearing is in order.
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If you need to call the IRS,
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check out my video linked above where I show you how to navigate the IRS phone
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maze and hopefully speak with an IRS employee.
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Now, if you're completely frustrated
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and don't even want to try calling the IRS yourself for a fee, most tax professionals
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can call the IRS on your behalf with a properly signed authorization form.
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Eighty eight.
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Twenty one, the IRS has a special number for tax professionals and they can usually
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get through to the IRS much quicker than for individuals.
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But this may or may not help you with actually getting additional information.
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Do note that the IRS will pay you interest on your.
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Tax refund at an interest rate of three percent.
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I hope you found the video helpful.
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If you did, please consider hitting
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the like button and subscribing to my channel.
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If you have a question, leave a comment below.
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My name's Noel.
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I help people who don't have their own
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personal accountant by answering not so common money, business and tax questions.
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Let me know in the comments if you have a topic that you'd like me to cover.
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Thanks for watching and see you in the next video!