Why Has the IRS Not Approved My Refund Yet?
Withdrawing a refund from the IRS can sometimes feel like a drawn-out process. Understanding the reasons why your refund has not yet been approved and the steps the IRS is taking to process your return can help alleviate some of the frustration.
Understanding the Refund Process at the IRS
The process of processing your tax refund at the IRS varies based on several factors:
The Return Was Received by the IRS. The IRS receives millions of tax returns each year, both electronically and on paper. If your return was submitted on paper, it might take a few days for the IRS to process it. For electronically filed returns (e-filed), processing times can be significantly faster. The Refund Was Approved. Once the IRS reviews and approves your tax return, it's time for the refund to be processed. Here, the type of refund you are expecting might influence the processing time. The Refund Was Sent to You. Once the refund is approved, the IRS sends it to the bank or financial institution where the refund is to be deposited. This step usually involves electronic transfers but can take up to several weeks, especially for larger refunds.Common Reasons for Delays in IRS Refunds
Errors in the Return. Misstating your taxes, missing information, or incorrectly filing your return can delay the processing time. Owed Taxes or Back Payments. If you owe any federal or state taxes or are behind on child support, student loans, or have other tax-related obligations, this can affect your refund. Paper vs. Electronic Filings. Paper returns can take longer to process than electronic ones due to manual handling. High Volume of Returns. With numerous tax filings and a backlog of returns, the IRS must manage a high volume of cases efficiently. Complexity of the Return. A more complex return with additional forms or details added can take longer to process.Current Status of the IRS Backlog
For the fiscal year 2020, the IRS is currently working to reduce its backlog:
About 10 million paper returns need further processing. Approximately 5.7 million electronic returns are pending additional information from taxpayers. Over 4 million returns are expected to be filed by the extended due date of October 15, 2022.General Guidelines for Faster Refund Processing
Accuracy in Filing. Ensure that all information provided is accurate to avoid errors and delays. User of E-File. Choose to file electronically rather than on paper for faster processing. Use of Direct Deposit. The IRS offers the option to have your refund directly deposited into your bank account, which is faster than receiving a mailed check. Respond Promptly to Requests for Information. If the IRS requests additional information, respond as quickly as possible to avoid delays. Check Your Refund Status Regularly. You can check the status of your refund through various online portals, including IRS.gov.Important Points to Consider
Even after submission, some electronic returns may face delays due to high volume, especially in certain months close to the due date. The 2021 tax filing season closed on May 17, 2021, but millions of returns are still being processed, especially paper returns and those needing additional information.Conclusion
The IRS processes refunds efficiently but understands that delays can occur. By understanding the process and following the guidelines provided, you can better manage expectations and ensure a smoother refund process.