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IRS BACKLOG


Lee B

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Received this today.  My only practical reply was to suggest to contact their local Congress person and Senator (and if the businesses need the funds, they should be adjusting their deposits accordingly, instead of counting on a timely refund).

"In the 2nd quarter many of them qualified for the retention credit on form 941. From the clients we have spoken to, none have received their refunds yet. I have been researching and it is only suppose to take 6 to 8 weeks. I am at a loss as to what to tell our clients. Do have have any idea why the refund is taking so long? Thanks for any information."

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7 hours ago, ETax847 said:

Every time I call the IRS to check on an amended return that we submitted in April they give me a new 16 week time frame to wait.  

A new employee told a client to not expect the 2017 1040X refund until January. I told her she should have told them a year, because it was taking 6-9 months BEFORE the virus. This is why the IRS wanted to start efiling amended 1040's. It should streamline their processes and save them paying so much interest on refunds.

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A client had filed an estate return and was supposed to get a big refund.  The original was efiled and we have IRS acknowledgement that it was received. When I got involved on the decedent's final return I noticed an error on the estate return, amended it, and the client sent in a check for the balance due.  (In essence the original refund shouldn't have been so big.)  They hadn't received the refund yet because the 1310 was missing.  I fully expected an IRS notice asking for the 1310. Instead, client just received a notice that IRS got their check for the amended and didn't have an account to apply it to so asked for a copy of the return.  The original was efiled so there has to be an account!  He called IRS and was advised not to do anything, just to wait until IRS sorts it out.  Congress recently asked IRS if it will be through the backlog in time for 2020 filing season.  Good question.

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I just checked again with the IRS amended return link.  I got a new response.  A notice that the return was received May 19, 2020 but has not been processed yet.  So at least they have done something.  Logged the return into the system to acknowledge receipt of it.  Previously I got no response other than the standard comment that it is not in their system.  I'm assuming maybe the 3 week period may start now.  Hoping anyway.

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3 hours ago, Randall said:

I just checked again with the IRS amended return link.

We have one where we only know that they have the (mailed-in; 2018) amended return because the check that was put in with it was finally cashed!  Client mailed in early July; check was cashed about a week ago.  Yikes!

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I have a couple of clients who occasionally enter the wrong quarter for their EFTPS deposits.  I've been warning them since back in April that they had better be extra careful these days.  If they make a mistake it might take a VERY long time to sort it out.  The one who entered 3rd quarter 2020 back in March on a weekly payment is an example. They had to double up on the payment back when we filed the 1st quarter return and we are just now claiming the original deposit on their 941 due this month.  Of course, there's always the possibility that someone at IRS caught it and reclassified it, but in the absence of a notice I've just assumed the deposit was sitting dormant for 6 months .  Just glad it was a couple of thousand so it didn't cause a cash flow problem. 

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I can tell this much. My personal return was extended and had to be mailed in. I mailed the check for the balance due with the return. In less than 10 days, the check was deposited and cashed by the IRS. Still no confirmation on the processing of the return. I sent it certified mail, got the greed card, they got my money. I guess it is they'll take the money and run and wait forever and a day to process the return. I thought for sure that mailing would have floated around somewhere in Charlotte for at least three or four months. However, it is proven this was not the case.

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On 10/29/2020 at 6:02 PM, JohnH said:

That hasn't been my experience.  Sometimes they have reclassified, but it's hit and miss.  I've seen similar situations with several clients over the years. 

My point is that when you or the IRS calculates the underpayment penalty, the payment is placed in the quarter in which it posted, regardless of which quarter you said it was for.

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