IRS is holding millions of tax returns, delaying refunds
The IRS is holding 29 million tax returns for manual processing, delaying tax refunds for many Americans, according to the National Taxpayer Advocate, an independent arm of the tax agency that looks out for consumers' interest. The delays are prompting some taxpayers to fret over social media about spending weeks waiting in limbo for their money.
Typically, the IRS sends most refunds within three weeks of taxpayers filing their return. But this year is complicated by several issues, including a backlog of 2019 paper tax returns that the IRS was unable to process after shuttering its offices during the coronavirus pandemic.
A recent notice from the IRS said that some people may experience a longer than average wait for their payments. That may especially impact tax returns that need a correction due to changes made by the Recovery Rebate Credit — a tax credit adjustment for people who were owed more stimulus money — or to verify income for the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC), according to the agency.
"This work does not require us to correspond with taxpayers but does require special handling by an IRS employee, so in these instances, it is taking the IRS more than 21 days to issue any related refund," the IRS said in a March 18 post.
ARTICLE CREDIT: CBS NEWS