Jump to content
ATX Community

AMENDED RETURN BACKLOG


Lee B

Recommended Posts

Copied from the Taxpayer Advocate Blog:

"As of October 30, 2021, the IRS had a backlog of over 2.7 million unprocessed amended returns. The IRS is processing these returns in the order received, and the current processing time posted on its operational page is more than 20 weeks. Our cases indicate that the processing time is considerably longer than 20 weeks, and as such, I have made the difficult decision to suspend accepting cases where the sole issue involves the processing of amended returns until the IRS is able to work through its backlog. We are also analyzing the upcoming filing season and expect to issue revised guidance for original filed returns.

Under our current procedures, TAS does not accept cases in which we cannot meaningfully expedite or improve case resolution for taxpayers. Amended returns fall into this category. Due to the broad impact of COVID-19, the IRS has faced significant challenges in all its return processing operations. Unfortunately, until the IRS processes a tax return, TAS cannot assist the taxpayer. For that reason, TAS will not accept new cases solely involving the processing of an individual or business amended return. TAS will continue to monitor IRS developments in amended return processing and will reevaluate this determination as the situation change."

I have a family member who has a very large refund on an amended return who has been waiting for more than 12 months.

They received their state refund 4 or 5 months ago.

  • Like 2
Link to comment
Share on other sites

A strategy I use for amended returns (dunno whether it is smart or not):

If the amended return results in a refund, apply the refund to 2021 estimated taxes.  That way the IRS must wait on itself to validate payments, and has to deal with the amended return to get closure on taxpayer's liability or refund. 

Serves them right.

 

  • Like 1
Link to comment
Share on other sites

I have a client who applied $1500 to 2020 tax return.  The IRS is dunning him for $746 dollars because that money was never applied.  That leads me to believe that they have not even processed all of the 2019 returns as we went deep into his IRS record and they are saying that he never filed in 2019.  However, I have proof of the date of filing and the date of acceptance by the IRS.  Since we have not been able to talk to anyone, I sent detailed instructions and copies of all forms to them.  In return, he just keeps getting collection letters and so we have decided to sit it out as he does not owe them any money and somewhere in their chaotic world, he has $1500 that he applied from 2019.  Therefore, I would not use that ploy.  I would ask for the refund.

  • Like 3
Link to comment
Share on other sites

I have a client who ELECTRONICALLY paid $5k with his extension.  Turns out he had a huge refund, which came in $5k short.  IRS transcript shows the $5k received. This coupled with the other comments here suggests the IRS is now so dysfunctional they aren't even keeping track of the money.  Okay, so they can't answer phones or timely look at faxes or correspondence or do enough audits, but keeping tabs on the money?  Hey, they're part of the US Treasury, whose job is to account for the money.  We might need a new accounts receivable department.

  • Like 1
  • Sad 1
Link to comment
Share on other sites

When I have customers who run into endless logjams, especially when threatened with liens and levies from the collection dept for money they really don't owe, I have had success referring them to their congressman.  IRS obviously listens to congress when they won't listen to anyone else, and it might improve the situation with congress well if they start receiving many referrals from their constituents.

  • Like 1
Link to comment
Share on other sites

I have a client who swears he didn't receive first stimulus rebate, so I efiled his return claiming the Recovery  Rebate Credit which resulted in him expecting a refund,

which was applied toward his estimated payments

Four months later he received a CP 11 saying that according to IRS records he received the $ 1,200 rebate and instead of a refund he now owes about $ 300.

So now he will potentially be subject to penalties and interest for late estimated payments.

I have no idea how this will get resolved.

  • Like 2
Link to comment
Share on other sites

Half of taxpayers probably don't remember receiving their stimulus.  Most of those discover they did when we make them look it up.  I had one who says he did look it up after I asked, still swore he didn't get it, and then looked it up again when he got the IRS notice.  Sure enough, he got it.  I would trust the IRS on this one.  He can set up a taxpayer account and see what they sent him and how.  Someone on this board said their client who didn't receive the stimulus discovered IRS had a issued a debit card, which is why it didn't show up on the bank statements.  This is NOT OUR PROBLEM to solve but the client's.  We've given up trying to help and just give them IRS phone numbers.

  • Like 5
Link to comment
Share on other sites

On 11/20/2021 at 9:27 PM, Sara EA said:

I have a client who ELECTRONICALLY paid $5k with his extension.  Turns out he had a huge refund, which came in $5k short.  IRS transcript shows the $5k received. This coupled with the other comments here suggests the IRS is now so dysfunctional they aren't even keeping track of the money.  Okay, so they can't answer phones or timely look at faxes or correspondence or do enough audits, but keeping tabs on the money?  Hey, they're part of the US Treasury, whose job is to account for the money.  We might need a new accounts receivable department.

This is scary and I think it's only going to get worse.

  • Like 3
Link to comment
Share on other sites

 

13 hours ago, Sara EA said:

. . . . . . .  He can set up a taxpayer account and see what they sent him and how.  . . . . . . This is NOT OUR PROBLEM to solve but the client's.  We've given up trying to help and just give them IRS phone numbers.

Some months ago, I logged into my Secure Access account to check the details of my rebates.

While it shows that the rebates were disbursed, there wen't any details of how the funds were distributed.

 

 

  • Like 2
Link to comment
Share on other sites

6 minutes ago, Abby Normal said:

Any who could not tell me about their stimulus payments, were filed as if they had previously received the max amount. So any IRS adjustment would only be in the taxpayer's favor, which makes clients happy... usually.

Did you have any clients who were sure that they didn't receive one of the rebates and how did you handle that?

Link to comment
Share on other sites

If they insisted they didn't get the stimulus, I did enter zero.  Some did and their refunds were short.  Not my problem.  The only pattern I discerned of people who said they didn't get the money were MFJ returns where a spouse had died.  I had enough of those where the surviving spouse said no second stimulus was received to believe them.  I put in zero for the second and in all cases the rebate recovery was paid.  At least I believe it was because if not I'm sure I would have heard about it!

  • Like 6
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...