Tax returns that require a correction relating to the Recovery Rebate Credit - or what most people who aren't tax professionals know as stimulus money.Susan Allen, senior manager for tax practice and ethics with the American Institute of CPAs, said the IRS has issued guidance to tax professionals this year noting that in some situations it may take more than the typical wait of 21 days or less to issue any related refund. "This whole pandemic has just flipped the IRS on its head," Brown said. The taxpayer with the biggest refund owed had claimed the Earned Income Tax Credit, the additional child tax credit and the Recover Rebate Credit for a newborn in 2020.īrown puts some of the blame on a long-understaffed IRS, adding that the emergency measures triggered during the coronavirus crisis only made matters worse. The refunds ranged from $2,040 to as much as $12,569. Their refund money typically should have shown up by early to mid-March, given that the 2020 returns were filed electronically in February. They're "the very ones that need the refunds to help through these tough times," Brown said. Most of the clients still waiting - 10 out of the 15 - claimed the Earned Income Tax Credit, which is designed to help low- to moderate-income workers and families get a generous tax break. "And every time I check the IRS website it says that the refund is being processed and the refund date has yet to be determined." "They've been contacting me almost weekly," Brown said. "It's a big mess," said Antonio Brown, a CPA in Flint.Īs of mid-April, Brown said he had about 15 clients who continued to wait for their income tax refunds. IRS Commissioner Charles Rettig, who spoke before the Senate Finance Committee on April 13, said the 2021 tax filing season "continues to go smoothly." "We are processing returns received over the summer and fall in 2020 due to the extended July 15, 2020, tax filing due date," the IRS said. Real life challenges at the IRS include dealing with a COVID-19-related backlog of returns from 2019.Īs of April 9, the IRS said it had yet to complete 1.5 million individual tax returns received last year but the IRS said those returns are in the “processing pipeline.” Through April 9, the IRS issued 67.7 million income tax refunds - averaging $2,888. The IRS processed 91.15 million individual tax returns through April 9, down 6.8% from a year ago.Īt the same time, roughly 9.5 million fewer federal income tax refunds were issued through April 9 - a 12.3% decline - compared with the same time last year, according to IRS statistics. The IRS received 100.9 million returns through April 9, down 3% from the year ago time frame. Many don't wait until the last minute because they depend on their refunds to pay big bills. Many people filed already, though, in order to claim a Recovery Rebate Credit to collect stimulus money that they're still owed. The official tax deadline of April 15 was extended until May 17 to reflect some of the challenges taxpayers and tax professionals continue to face during the pandemic. The money would cover the estimated car repair of $3,000. But until she gets the money, she's hoping to delay fixing the car. 27 and she's expecting to receive a 2020 tax refund of $5,522. Her grandson Ja'Tavion Walker, 14, who lives with her, is getting a ride from his basketball coach until she's able to afford fixing the catalytic converter on her 2015 Cadillac SRX Sport Utility.Īnd, fortunately, she hasn't had to drive her granddaughter Don'Jhanaya Buck, 11, who also lives with her, to a long list of dance competitions elsewhere in Michigan during pandemic-related pauses. She's babying the car as much as possible. "I pray a lot, let me say that," said Williams, who says as a breast cancer survivor she knows it is essential to limit stress.
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