Filing frustrations? Here’s 4 reasons why your tax refund might be delayed–and what you can do about it!
- Replies 2
As the tax season unfolds, the Internal Revenue Service gears up for the annual flurry of activity, with an estimated 140 million Americans poised to file their taxes.
For many, the tax refund is a much-anticipated financial boost, but the wait can be fraught with anxiety, especially when delays occur.
To help you steer clear of common pitfalls and expedite your refund, The GrayVine has tapped into the wisdom of seasoned tax professionals to bring you invaluable insights.
The journey to receiving your tax refund begins with the submission of your tax return.
The IRS typically issues refunds within 10 to 21 days for federal taxes and between 14 and 28 days for state taxes if you e-file, according to Jackie Perlman, CPA and tax law analyst from The Tax Institute at H&R Block.
However, this timeline can be affected by several factors, including the method of filing and the timing of your submission. Taxpayers that have several forms of income, specific assets or those claiming certain credits like the Earned Income Tax Credit or Child Tax Credit may need to wait a bit more.
In the digital age, e-filing has become the norm for its convenience and speed. Paper returns sent by mail can significantly slow down the process, so if you're looking for a swift refund, electronic is the way to go.
Recommended for you: IRS tax filing season begins: Key dates and other features you need to know
Occasionally, the IRS may flag a return for additional review, which can extend the waiting period for your refund. While this is relatively rare, it's a reminder of the importance of accuracy in your tax filings.
Paul Miller, CPA and managing partner at Miller & Company LLP, emphasizes preparation as the antidote to common errors that lead to delays. Here are the four main culprits:
1. Inaccurate information: Ensure all your documents align with your previous year's return. Your CPA can access your wage and income transcripts from the IRS to verify accuracy.
2. Identity theft concerns: If the IRS suspects fraudulent activity, they may require additional verification, which can delay your refund.
3. Specific tax credit claims: Returns claiming the Earned Income Tax Credit, Child Tax Credit, or involving Form 8379 for Injured Spouse Allocation may require extra processing time.
4. Banking procedures: The time it takes for your bank to process and deposit the refund can also contribute to delays.
To avoid these setbacks, Miller advises, "Make sure you're prepared and compare all of your documents to your prior year's return. Work with your CPA, who can verify that all of your information is accurate."
Recent hiring freezes and potential layoffs at the IRS have raised concerns about the impact on refund processing times.
"This memorandum shall remain in effect for the IRS until the Secretary of the Treasury, in consultation with the Director of OMB and the Administrator of USDS, determines that it is in the national interest to lift the freeze," reads the executive order signed on January 20.
In addition to the ongoing hiring freeze, as many as 15,000 newly hired IRS employees could face layoffs as early as this week.
Source: USA TODAY / Youtube.
These job cuts primarily affect lower-level positions, including taxpayer support representatives, call center staff, and junior auditors.
With approximately 90,000 full-time employees, the IRS stands to lose around 17% of its workforce if the layoffs proceed.
While these roles are not directly responsible for processing tax filings, the staffing changes have sparked concerns about potential delays in refund processing times.
Chris Rivera, CPA and founder of The Ecommerce Accountants, warns that staffing shortages could slow down the review of returns and affect customer service response times.
Also read: Experts reveal tax filing trick to put thousands back in your wallet
However, Miller suggests that the impact on processing times may be minimal, as refund timelines are already unpredictable. He also pointed to the Department of Government Efficiency, led by Elon Musk, expressing that the introduction of AI could improve the refund process by providing a better computer system.
As you prepare to file your taxes, remember the federal income tax deadline of April 15, 2025, and June 16, 2025, for those living overseas.
Keep abreast of changes that could affect your refund amount and don't overlook key options that could add up to $5,000 to your return.
Source: LYFE Accounting / Youtube.
The IRS offers a “Where's My Refund?” tool on their website, which requires your Social Security or taxpayer ID number, filing status, and the exact refund amount. This tool will inform you of the status of your refund, whether it's been received, approved, or sent.
Learn about get your tax refund faster by using 3 steps on how to track it and stay on top of the exact dates of the 2025 stimulus checks to be released by the IRS.
Recommended for you: Tax season chaos: What’s delaying your refund now?
What’s the biggest tax challenge you’ve faced this year? Have you discovered any smart tax-saving tips you’d like to share? Share your experiences, tips, and questions in the comments below!
For many, the tax refund is a much-anticipated financial boost, but the wait can be fraught with anxiety, especially when delays occur.
To help you steer clear of common pitfalls and expedite your refund, The GrayVine has tapped into the wisdom of seasoned tax professionals to bring you invaluable insights.
The journey to receiving your tax refund begins with the submission of your tax return.
The IRS typically issues refunds within 10 to 21 days for federal taxes and between 14 and 28 days for state taxes if you e-file, according to Jackie Perlman, CPA and tax law analyst from The Tax Institute at H&R Block.
However, this timeline can be affected by several factors, including the method of filing and the timing of your submission. Taxpayers that have several forms of income, specific assets or those claiming certain credits like the Earned Income Tax Credit or Child Tax Credit may need to wait a bit more.
In the digital age, e-filing has become the norm for its convenience and speed. Paper returns sent by mail can significantly slow down the process, so if you're looking for a swift refund, electronic is the way to go.
Recommended for you: IRS tax filing season begins: Key dates and other features you need to know
Tax experts advise that a variety of factors can cause delays in receiving tax refunds, including the timing of filing and the method of submission. Image source: USA TODAY / Youtube.
Occasionally, the IRS may flag a return for additional review, which can extend the waiting period for your refund. While this is relatively rare, it's a reminder of the importance of accuracy in your tax filings.
Paul Miller, CPA and managing partner at Miller & Company LLP, emphasizes preparation as the antidote to common errors that lead to delays. Here are the four main culprits:
1. Inaccurate information: Ensure all your documents align with your previous year's return. Your CPA can access your wage and income transcripts from the IRS to verify accuracy.
2. Identity theft concerns: If the IRS suspects fraudulent activity, they may require additional verification, which can delay your refund.
3. Specific tax credit claims: Returns claiming the Earned Income Tax Credit, Child Tax Credit, or involving Form 8379 for Injured Spouse Allocation may require extra processing time.
4. Banking procedures: The time it takes for your bank to process and deposit the refund can also contribute to delays.
To avoid these setbacks, Miller advises, "Make sure you're prepared and compare all of your documents to your prior year's return. Work with your CPA, who can verify that all of your information is accurate."
Recent hiring freezes and potential layoffs at the IRS have raised concerns about the impact on refund processing times.
"This memorandum shall remain in effect for the IRS until the Secretary of the Treasury, in consultation with the Director of OMB and the Administrator of USDS, determines that it is in the national interest to lift the freeze," reads the executive order signed on January 20.
In addition to the ongoing hiring freeze, as many as 15,000 newly hired IRS employees could face layoffs as early as this week.
Source: USA TODAY / Youtube.
These job cuts primarily affect lower-level positions, including taxpayer support representatives, call center staff, and junior auditors.
With approximately 90,000 full-time employees, the IRS stands to lose around 17% of its workforce if the layoffs proceed.
While these roles are not directly responsible for processing tax filings, the staffing changes have sparked concerns about potential delays in refund processing times.
Chris Rivera, CPA and founder of The Ecommerce Accountants, warns that staffing shortages could slow down the review of returns and affect customer service response times.
Also read: Experts reveal tax filing trick to put thousands back in your wallet
However, Miller suggests that the impact on processing times may be minimal, as refund timelines are already unpredictable. He also pointed to the Department of Government Efficiency, led by Elon Musk, expressing that the introduction of AI could improve the refund process by providing a better computer system.
As you prepare to file your taxes, remember the federal income tax deadline of April 15, 2025, and June 16, 2025, for those living overseas.
Keep abreast of changes that could affect your refund amount and don't overlook key options that could add up to $5,000 to your return.
Source: LYFE Accounting / Youtube.
The IRS offers a “Where's My Refund?” tool on their website, which requires your Social Security or taxpayer ID number, filing status, and the exact refund amount. This tool will inform you of the status of your refund, whether it's been received, approved, or sent.
Learn about get your tax refund faster by using 3 steps on how to track it and stay on top of the exact dates of the 2025 stimulus checks to be released by the IRS.
Recommended for you: Tax season chaos: What’s delaying your refund now?
What’s the biggest tax challenge you’ve faced this year? Have you discovered any smart tax-saving tips you’d like to share? Share your experiences, tips, and questions in the comments below!
