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Delayed past year refunds


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Has anyone fouind the "secret" of getting a client their past year's refunds being "lost", misplaced, in the IRS' system; even though the tax returns qwere E-filed and accepted by the IRS.

I've got 2 clients waiting for refunds from 2020.

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1 hour ago, TAG said:

Has anyone fouind the "secret" of getting a client their past year's refunds being "lost", misplaced, in the IRS' system; even though the tax returns qwere E-filed and accepted by the IRS.

I've got 2 clients waiting for refunds from 2020.

Congressional Inquiry.   Each congressional office has an IRS liaison (so I am told).  They will contact the IRS and ask them to get an answer to the taxpayer.  Taxpayer has to make the contact with the congressional office, you can't do it for them.

I heard this one at a tax seminar last week.   Not sure if it really works, but it is worth a shot.  The presenter said he has done it several times and usually the IRS gets on the ball within a couple weeks to at least get the return moving through the system again.

It makes sense that congressional members up for re-election in a few months will want to make taxpayers happy.

I am trying this method this week with one of my clients.  I will post back if they get results. 

Tom
Longview, TX

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Lat Fall I took an IRS CPE webinar where the main presenter was Erin Collins, The National Taxpayer Advocate.

She said that they had stopped taking referrals from congressional offices because of a large backlog of taxpayer cases they were were working on

plus a staff shortage of 500 positions. If will be interesting to see if your clients make any progress via contacting the offices of their congressperson.

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13 hours ago, cbslee said:

She said that they had stopped taking referrals from congressional offices because of a large backlog of taxpayer cases they were were working on

I understand they started taking congressional referrals again in June.

https://www.taxnotes.com/research/federal/other-documents/other-irs-documents/taxpayer-advocate-service-updates-case-acceptance-criteria/7dm2j

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20 hours ago, TAG said:

Has anyone fouind the "secret" of getting a client their past year's refunds being "lost", misplaced, in the IRS' system; even though the tax returns qwere E-filed and accepted by the IRS.

I've got 2 clients waiting for refunds from 2020.

My own 2020 refund was held up until I called 20 times over a three-day period in May 2022.  On the 20th call, I was given the opportunity for a call back from PPS, and it actually happened.  The representative resolved the issue, which may have had something to do with me making a payment with the 2020 extension request, then applying part of the 2020 refund to 2021 estimated taxes.   I don't know, but she did make that observation while I was on the line.  I do that all the time.  Another tax pro on Facebook talked about the same scenario with his 2020 return, which is why I finally stopped waiting and started calling.   It was a frustrating process, and I'm just happy it was my return and not a client's.  We can never charge enough for things like this.

 

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13 hours ago, Sara EA said:

First look for a reason the returns were possibly pulled for further examination.  Did either client claim the recovery rebate credit?  Perhaps purchased insurance through the exchange and didn't include Form 8962?  Those returns that need a person to review are taking forever.

In my client's case, I know exactly why it is being held up (and I completely understand why).  I can provide all the backup documentation for the position taken on the return so they can make a decision.  I am ready to go to appeals if they deny, and tax court if the appeal is denied.   When I got through to the PPL (32nd phone call over 2 days), the PPL rep told me they cannot pull the return from the department where it is held and they can't take any info from me until it is released by that department.  You can't fix something if the IRS is unable/unwilling to work on the return with you.   That is why I am asking my client to call their Representative.

When I first got my EA license, it was not this way.   The PPL was the ticket to quick resolution of disputes.   There seemed to be a more professional relationship between representatives and IRS agents on the PPL that we were both working to clear up the issue and move the return to the next point in the process, either a proposed change to the return by the IRS or no change and accept the return as filed.  The returns we worked on represented both our backlog and it made sense to work together to clear up the dispute.  How I long for those days to return.

Tom
Longview, TX

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18 hours ago, TAXMAN said:

Is there a way to find out what your person may be. I have one I really would like to get moving.

If you are asking who the Congressional Rep is, google "what congressional district is (clients address) in".   That is what I did.   Search came back with the congressional district and congressman's name.   Went to his website and got the contact information for the client.   Gave them a quick primer on what to ask for and what to be ready to provide to the congressional staffer.  Told them to make sure they told the congressman's staffer about the disability status of the spouse (hey, it can't hurt for the congressman to know that disabled individuals are being hurt by the IRS inaction - but it may not help).

Tom
Longview, TX

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I think most IRS employees are doing the best they can buried under a mountain of paperwork using old computer systems that don't communicate with each other. Most of the blame lies with our elected representatives, who pat themselves on the back whenever a tax law gets passed,

giving no thought to what it will take to get the changes implemented.

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On 8/4/2022 at 11:58 AM, cbslee said:

I think most IRS employees are doing the best they can buried under a mountain of paperwork using old computer systems that don't communicate with each other. Most of the blame lies with our elected representatives, who pat themselves on the back whenever a tax law gets passed,

giving no thought to what it will take to get the changes implemented.

And also congratulate themselves for saving the taxpayer's money by cutting funding to the IRS for new staff and computers. 

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