What Happens When You File Taxes? Steps After Submission Explained

Filing taxes is a routine financial responsibility, but the process doesn’t end once you submit your return. Your information goes through multiple steps before finalization, and understanding these steps can help you anticipate potential updates and avoid surprises.

Receipt Confirmation

After submitting a tax return, the first sign of receipt is a confirmation notice. Electronic filers typically receive this within 24 hours via email or their tax software, while paper filers may wait weeks since mailed returns require manual entry.

This notice only verifies receipt, not approval. If an electronic return is rejected, the notice will include an error code explaining the issue, such as a mismatched Social Security number or missing information. The filer must correct and resubmit the return. Paper filers who make errors may not receive immediate feedback, leading to delays if the return is later flagged.

Processing and Verification

Once processing begins, the IRS runs automated and manual checks to verify the reported information against employer, bank, and third-party records. If discrepancies arise, such as underreported income, the return may be flagged for further review, extending processing times.

Deductions and credits also undergo scrutiny, particularly tax credits like the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC), which are subject to additional review under the PATH Act. If documentation is needed, the IRS may request proof, such as receipts for deductible expenses or records verifying a claimed dependent.

Returns without issues typically process within three weeks for electronic filers. Paper submissions take longer due to manual data entry. If the IRS suspects identity theft, processing may be delayed until the taxpayer verifies their identity.

Refund or Payment Obligations

Once processing is complete, the IRS determines whether the filer is owed a refund or has a balance due. Refunds are issued via direct deposit or mailed check, with direct deposit typically arriving within 21 days for electronic filers. Paper checks take longer due to mailing times. Taxpayers can also apply refunds toward next year’s estimated tax payments.

For those who owe taxes, the IRS offers multiple payment options, including Direct Pay, credit or debit card payments (which may incur fees), and the Electronic Federal Tax Payment System (EFTPS), a free service for direct bank transfers. If immediate payment isn’t possible, installment plans allow taxpayers to spread payments over time. Short-term plans (120 days or less) have no setup fees, while long-term agreements include fees ranging from $31 to $225, depending on the payment method and application method.

Potential Adjustments

If the IRS identifies discrepancies, it may adjust the return. These changes often result from miscalculations, omitted income, or ineligible deductions and credits. When this happens, the IRS issues a CP2000 notice or similar correspondence outlining the proposed changes and recalculated tax liability.

Taxpayers can accept or dispute the changes. If the revised calculation is correct, no further action is needed beyond paying any additional amount owed. If the taxpayer disagrees, they must respond by the deadline, usually 30 days from the notice date, and provide supporting documentation. Ignoring the notice can result in the IRS finalizing the adjustment and issuing a bill, which may include interest and penalties.

Debt Offsets

Even if a refund is approved, it may be reduced if the taxpayer has outstanding debts. The Treasury Offset Program (TOP) allows federal and state agencies to intercept refunds to cover unpaid obligations, such as delinquent taxes, defaulted student loans, child support arrears, or certain unemployment compensation debts. The Bureau of the Fiscal Service (BFS) administers these offsets and notifies affected taxpayers by mail, detailing the amount deducted and the agency that received the funds.

If a taxpayer believes the offset was made in error or wants to dispute the debt, they must contact the agency that initiated the claim, not the IRS. In cases where only one spouse on a joint return is responsible for the debt, the injured spouse can file Form 8379 to request their portion of the refund. Processing times for injured spouse claims vary, often taking up to 14 weeks.

Record Retention

After the return is processed, keeping proper records is important. The IRS recommends retaining tax returns and supporting documents for at least three years, as this is the standard period for audits or additional tax assessments. If a taxpayer underreports income by more than 25%, the statute of limitations extends to six years. In cases of fraud or unfiled returns, there is no time limit for IRS action.

Documents to keep include W-2s, 1099s, receipts for deductible expenses, and records supporting credits or exemptions. These may be needed if questioned by tax authorities or when applying for loans, as lenders often request recent tax returns to verify income. Digital storage solutions, such as encrypted cloud services or external hard drives, can help ensure records remain accessible and secure.