IRS BACKLOG UPDATE

[joanmcq]

JohnH, I paper filed a 2016 trust return (balance due) this summer and the IRS processed the payment but seems to have lost the return! We filed a second copy.  You May want to call to check the status of your clients return.

[TAXMAN]

Recently after verifying TP on phone with agent was told 2019 return could take another 180 days. Anyone got any updates on their catching up on some of this old stuff?

[Lee B]

This is the most current IRS update, dated 12/1/20:

 

"The IRS has made significant progress opening backlogged mail. While, as of November 24, 2020, we had 7.1 million unprocessed individual tax returns and 2.3 million unprocessed business returns, the IRS expects to issue all refunds for 2019 individual tax returns in 2020 where there are no issues with the return. For refunds that cannot be issued in 2020 because the tax return is being corrected, reviewed or awaiting correspondence from a taxpayer, the refund will be issued as a paper check in 2021 per our normal processes. Taxpayers are encouraged to continue to check Where’s My Refund for their personalized refund status.

How long you may have to wait:  It depends on where you sent your tax return and where it is in the process. In some locations, we are caught up or almost caught up. In other locations we are processing returns we received over the summer due to the extended July 15 tax filing due date and, in some cases, are processing tax returns dated as early as April 15, 2020. However, we are rerouting tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available, and we are taking other actions to reduce this backlog. Tax returns are opened in the order it is received. As the return is processed, it may be delayed because it has a mistake, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify that it was you who sent the tax return, we will write you a letter. The resolution of these issues depends on how quickly and accurately you respond, and the IRS staff trained and working under social distancing requirements to complete the processing of your return.

What you should do: Unfortunately, other than responding to any requests for information promptly, there’s no action you can take. We’re working hard to get through the backlog. Please don’t file a second tax return or contact the IRS about the status of your return."