Tax Experts Explain Why Refunds Get Delayed — and What To Do If Yours Is Missing
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Josephine Nesbit
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Jenna Klaverweiden
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At this time of the year, it’s not uncommon for taxpayers to rush to file their tax return, eager to receive a refund as soon as possible. But what happens when the expected deposit doesn’t show up?
These are some of the most common reasons tax refunds get delayed, according to tax experts, and what to do if yours is missing.
Also see three money experts’ advice on what to do with your tax refund this year.
Errors or Mismatches
Errors on tax returns are the most common cause of delays.
“Taxpayers should carefully check their return, even if prepared by a professional, for simple mistakes such as typos in Social Security numbers, names or bank account information, as these inevitably slow or even prevent processing,” Jason Stanfield, Ph.D., CPA, American Accounting Association member and associate professor at the Paul W. Parkison Department of Accounting at Ball State University, explained in an email statement.
Certain errors, like failing to report income, can also trigger human intervention to process the return, according to Gene Bott, CPA, tax advisor and partner at Tax Hive.
Identity Verification
“The IRS has become far more aggressive in recent years in screening for identity theft and fraud,” Bott explained. “People are frequently required to verify their identity before the IRS will process their return.”
When this happens, taxpayers will receive a letter requesting identity verification before their refund is released.
Filing Time
Filing before you receive all your tax documents, or filing too late, can also cause a delay. Stanfield recommended waiting until source documents have been received before doing your taxes.
“Filing early is generally a good strategy to receive a refund more quickly, as the IRS’ processing often slows in mid-March as return volume increases in anticipation of the April 15th deadline,” Stanfield explained.
Filing by Mail
Most experts recommend filing electronically and choosing direct deposit rather than a paper check.
“Electronically filing a return is the most important step a taxpayer can take to receive their refund quickly, as refunds for paper returns can take as long as twelve weeks,” Stanfield explained.
Claiming Certain Tax Credits
Some tax credits are processed only after a certain date.
“Returns claiming the Earned Income Tax Credit or Additional Child Tax Credit will not have refunds processed until after February 15th, as required by law under 2015’s PATH Act,” Stanfield explained.
What To Do If Yours Is Missing
According to the IRS, most tax returns are processed within 21 days, but it can take up to six weeks.
If it’s taking longer to receive your refund, Bott recommended first checking the IRS “Where’s My Refund?” tool. Next, check your mail for IRS letters, like the identity verification letters that require action.
“If you haven’t received the letters and the tool indicates your refund is delayed, contact the IRS to find out what’s going on,” Bott explained. “We have seen them intentionally delay processing some returns simply because they are delayed, and they respond to callers first.”
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