Why Is My Federal Tax Return Taking So Long?

Waiting for a federal tax refund can be frustrating. While the Internal Revenue Service (IRS) issues most refunds within a few weeks, some returns experience delays. Understanding why a refund might take longer than expected can provide clarity on the processing timeline. Delays can stem from various factors related to the return or IRS operations.

Common Reasons for Delays

Mistakes made when preparing a tax return often lead to processing delays. Simple math errors, such as incorrect calculations of income or deductions, can cause the IRS to manually review the return. Similarly, entering an incorrect Social Security Number (SSN) for yourself, your spouse, or a dependent, or providing incorrect bank routing or account numbers for direct deposit, requires correction and slows the refund.

The IRS may flag a return for potential identity theft or fraud concerns, leading to an extended review period. This can occur if the IRS detects unusual activity, such as multiple returns filed under the same SSN or a significant change in income or deductions compared to previous years. In such cases, the IRS might send a letter requesting identity verification, which must be completed before processing can continue.

Claiming certain tax credits can also extend the processing time for a refund. Under the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue refunds before mid-February for returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). This measure helps prevent fraud related to these credits and applies even if the return is filed early in the tax season.

The method used to file a tax return significantly impacts processing speed. Electronically filed returns generally process much faster than those submitted on paper. While e-filed returns often see refunds issued within 21 days, paper-filed returns can take six to eight weeks or even longer to process due to the manual data entry and review required.

Filing an amended return using Form 1040-X, Amended U.S. Individual Income Tax Return, results in a longer processing period. These returns take up to 16 weeks to process from the date the IRS receives them. Returns requiring special review, such as those involving an injured spouse claim or complex business deductions, also take longer as they undergo additional scrutiny.

Sometimes, delays are due to internal IRS system issues or high processing volumes, particularly during peak filing season. The IRS may also need additional information from the taxpayer to complete processing. If the IRS sends a notice requesting clarification or supporting documentation, the refund will not be issued until the requested information is received and reviewed.

Checking Your Refund Status

Taxpayers can check the status of their federal tax refund using the IRS’s “Where’s My Refund?” tool. This online tool is available on the IRS website and through the IRS2Go mobile app. It provides information on the processing of a tax return and the expected refund delivery date.

To use the “Where’s My Refund?” tool, taxpayers need three pieces of information: their Social Security Number or Individual Taxpayer Identification Number (ITIN), their filing status (e.g., Single, Married Filing Jointly), and the exact refund amount shown on their tax return. Entering this information accurately ensures the tool can locate the correct refund status.

The tool provides information within 24 hours after an e-filed return is received by the IRS. For paper-filed returns, it may take up to four weeks from the mailing date for information to become available. Taxpayers can check the tool daily, as updates are made once every 24 hours, often overnight.

The “Where’s My Refund?” tool displays one of three main messages:

• Return Received: The IRS has your return and is processing it.
• Refund Approved: The IRS has processed your return and confirmed your refund amount.
• Refund Sent: Your refund has been dispatched via direct deposit or paper check.

If the tool indicates a delay or directs you to contact the IRS, it provides specific instructions.

When and How to Contact the IRS

Before contacting the IRS directly about a delayed refund, wait. For most e-filed returns, taxpayers should wait at least 21 days from the date they electronically filed before calling. If a paper return was mailed, wait six weeks from the mailing date. The “Where’s My Refund?” tool will indicate if calling the IRS is necessary.

When preparing to call the IRS regarding a refund inquiry, taxpayers should gather several important documents and pieces of information:

• A copy of the tax return in question.
• Social Security Numbers for everyone listed on the return.
• Information from a prior-year tax return for verification.
• Any letters or notices received from the IRS regarding the current tax year.

The general IRS customer service phone number for individual tax inquiries is 1-800-829-1040. This line is available during specific hours, Monday through Friday. If a taxpayer is experiencing significant financial hardship due to a delayed refund, or if standard IRS channels have not resolved a tax issue, they may consider contacting the Taxpayer Advocate Service, an independent organization within the IRS that helps taxpayers resolve problems.

During a call to the IRS, be prepared to explain the situation clearly and provide the requested verification details. While the IRS representative can provide status updates and explain reasons for delays, they may not be able to expedite the processing of a refund unless specific action is required from the taxpayer. Patience is needed during these calls due to potentially long wait times.