Thousands of taxpayers are still waiting on their tax returns to be processed and for the IRS to issue their tax refunds. Unfortunately, they may have to wait longer. Due to the COVID-19 outbreak, the IRS was forced to close offices around the country and began operating with a limited staff. Those staff members were only performing critical functions while the quarantine was happening. Along with only performing critical functions, the IRS also had to handle the distribution of the stimulus checks to Americans.
This meant that a majority of tax returns were not processed and tax refunds were not issued. We’ve had a lot of taxpayers calling in and asking where their tax refund is, but unfortunately, there is nothing you can do but wait. There are certain jobs the IRS employees cannot due from home which has led to a large backlog of tax returns that haven’t been processed among other things. Due to the quarantine, the IRS also ceased collection action on tax debts and did not actively seek to resolve past-due tax debts with taxpayers. The IRS is expected to pick up collection action on July 15th, after the extended tax deadline.
Starting June 1st, thousands of IRS employees are expected to return to work and begin processing tax returns along with the other backlog of work they will be returning to. Taxpayers who filed electronically can expect to have their return processed faster than those who filed their return via paper. There is already a longer processing time for those who choose to file their tax returns via paper and mailing it and those taxpayers can expect to see a longer delay in their tax returns filing than those that filed electronically.
Taxpayers have until July 15th to file their 2019 tax return or you must file for an extension by the 15th. Otherwise, your tax return would be considered late and you could face penalties for failure to file. If you need help filing your tax returns, Polston Tax can help! You can give us a call at 405-801-2146 or click below to schedule your free consultation.