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Latest Tax Refund Update And News Bulletin from IRS August 2021. - YouTube
Channel: Noel B. Lorenzana, CPA - Ask An Accountant
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I wanted to make another quick video
to let you know about the latest tax
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refund update by the IRS and cover
some recent questions I received.
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If you're an individual and you're still
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waiting for your IRS tax refund,
then please keep watching.
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Later on, I'll answer the question.
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Can you sue the IRS if you
don't receive your tax refund?
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Hi, I'm Noel Lorenzana
and I'm an accountant.
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If you want to see more videos like this
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one, please be sure
to subscribe to my channel.
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According to the latest IRS News Bulletin
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updated August six two thousand twenty
one, the IRS is open and processing mail
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tax returns, payments,
refunds and correspondences.
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These services include live phone support,
processing, tax returns filed on paper,
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answering mail from taxpayers,
reviewing tax returns.
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Even for returns filed electronically.
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The IRS is opening mail with the normal
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timeframes and that all paper
and electronic individual tax returns
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received prior to April twenty
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 manual review.
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As of July 31st,
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the IRS had thirteen point eight
million unprocessed individual returns.
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Their previous update indicated fifteen
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point six million unprocessed
individual returns.
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So they are working quickly to get through
the backlog as covered in my last video.
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The additional processing does not require
the IRS to correspond with taxpayers,
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but does require special
handling by an IRS employee.
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So in these instances,
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it's taking more than the usual twenty
one days to issue any related refunds.
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And in some cases,
this additional processing work could take
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an additional ninety to one
hundred twenty days.
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According to the IRS,
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the IRS is continuing to reroute tax
returns and taxpayer correspondences
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from locations that are behind to
locations where more staff is available.
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I don't want to repeat what I covered
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in my previous August update,
so I'll link it above.
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In case you haven't seen it,
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let's go over some recent questions I
received regarding tax refund delays.
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Does the IRS really pay interest
on delayed tax refunds?
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Yes, they actually do.
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The IRS allows themselves forty
five days to process your refund.
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During that time.
They won't pay you interest.
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If they're processing takes more than
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forty five days, then they're required
to pay you interest on your refund
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at a current annual interest
rate of three percent.
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Do keep in mind that the interest income
you receive is taxable income and you
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would need to report that on your
next year's tax return.
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What if I didn't receive
my stimulus payments?
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If you didn't receive your first or second
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stimulus payment, you should have claimed
that on your twenty twenty income tax
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return by completing the recovery rebate
credit worksheet as shown here,
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this credit carries over to line
thirty of form ten forty.
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So if you're not sure if you claimed
the stimulus payments,
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look for the worksheet and look
at line thirty of your form.
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Ten.
Forty.
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Can I sue the IRS if I
don't receive my refund?
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I actually didn't know the answer
to this and had to do some research.
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Yes, you can actually sue
the IRS for your tax refund.
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According to the Taxpayer Bill of Rights,
which is a cornerstone document
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that highlights the ten fundamental rights
taxpayers have when dealing with the IRS.
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If you fully paid the tax and the IRS
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denies your tax refund claim or if the IRS
takes no action on your claim within six
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months, then you may
file a refund lawsuit.
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You can file a lawsuit
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in the United States District Court or the
United States Court of Federal Claims.
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I don't have any personal
experience with this.
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So if someone knows about this firsthand,
please let us know in the comments.
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I think a lot of us would
love to sue the IRS.
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I think the information
in the description below.
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One last tip from one of my subscribers,
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Xen Brewer, he recommends emailing your
representative in Congress and informing
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them that you want your taxes
expedited because of a hardship.
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He did just this and actually received
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a call the next day, along with the letter
on congressional letterhead to provide
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to the IRS demanding that they
expedite his refund processing.
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The results are still pending, but it
sounds like a great plan of action.
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I feel that your congressional
representatives should be informed anyway,
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since their branch of government created
this mess we're all suffering from.
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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 is Noel.
I help people who don't have their own.
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Personal accountant,
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but answering not so common money,
business and tax questions,
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let me know in the comments if there's
a topic you'd like me to cover.
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Thanks for watching and see
you in the next video.
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