IRS way behind on mailed in amended forms

[Perryinva]

How far behind are they? I mailed in an amended form 1040x for 2018, with documentation in mid November 2020. Nothing really serious, but because I sold a primary residence house for more than $500k, I was supposed to get a 1099-S. I didn’t, which is not unusual for mail to get lost going from old to new residence. When selling your primary residence under $500k, you don’t enter anything on your 1040 about it. When you get a 1099-S you have to claim the income from the sale, then subtract out original cost to prove you did not make above the legal tax free appreciation. Since I never got a 1099-S and TaxAct did not ask if the sale of my house was above $500k, I entered nothing, and in November of 2020, I got an IRS notice saying I owed $289k in back taxes, penalties & interest. While the wife freaked, I knew it had to be a simple answer, and it was, filed a 1040x and owe nothing additional.

Knowing they were behind, I regularly checked the IRS site for Amended Return status, and it always stated the information was not available, and to wait 3 weeks for them to update the system. That was 4 1/2 months after I sent it in.

Yesterday ,4/6, I got the form letter saying they received my amended return on 11/20/20. “Please allow 90 days for review of the documentation before inquiring “ yada yada yada.

I’m thinking it’s going to be a lot more than 90 days....

And the website still shows “information not available”.

 

[disneysteve]

I just read an article (in Kiplinger's maybe) that due to many offices being closed for COVID, paper returns and correspondence basically just went into storage with no action being taken on it at all. They are now working their way through months of that paperwork.


Best advice for a while is to do everything possible electronically.

 

[pb4uski]

Thank you for this thread. It prompted me to once again check on DSs very late 2019 tax refund via the Where's My Refund portal and the status had changed from "Your tax return is being processed" to "Your refund was mailed...".

I checked his bank account and it hasn't been received yet, but since they used the word mailed then I think they may hae mailed him a check.

 

[audreyh1]

Late DF’s tax preparer did everything she could do eFile including form 1035, because she said the IRS was unbelievably backed up on anything submitted by paper.

Fortunately DF’s 2020 refund was received this week. It took just a couple of weeks.

 

[braumeister]

There was a news article a few months ago that said the IRS had over 11 million pieces of mail backed up in their Ogden UT office. Who knows how many at other offices. This will be a long time getting resolved.

 

[ivinsfan]

There was a news article a few months ago that said the IRS had over 11 million pieces of mail backed up in their Ogden UT office. Who knows how many at other offices. This will be a long time getting resolved.

I can't see this ever getting smaller, they get mail constantly..at what point do they forget the stacked up stuff and say Uncle? How can they function with millions of unopened mail piled up.

 

[pb4uski]

DS return was filed electronically on May 19, 2020. He subsequently received a question re:1095-A and we responded by mail in early October 2020 (he was due a larger refund) and his refund check was mailed Mar 26, 2021.

 

[Another Reader]

CPA filed an amended 2018 return last July (forgot those extra expense deductions for capital improvements). Checked the IRS website at the beginning of March, the return was received. The check showed up a couple of weeks ago, with interest.

 

[MichaelB]

One can log into the IRS and see what documents have been processed by tax year.

I submitted an amended return for ‘17, which has been “received but not processed”. It was mailed early last year. The tax due on the amended return was a small amount and has now been paid 3 times. The return and the credit balance are reflected in the account documentation, so I’m confident it will get worked out eventually.

 

[Perryinva]

Why would it have been paid 3 times? That is confusing.

I also had to file an amended for 2019, and unfortunately did it by mail before I discovered that 2019 (and all future) amended returns were eligible for electronic filing! In that case, thanks again to TaxAct incorrect by omission issue, earnings earned on a (as it turned out) ineligible Roth contribution in 2019, but not paid out as income until February of 2020, were supposed to be counted as 2019 income (even though I did not realize that income level made me Roth ineligible until Jan of 2020). So while I rolled the contribution to an eligible 2020 Roth, I was also prepared to pay the taxes on the earnings in 2020, which is when I received the check. So come Feb of 2021, I get these confusing 1099’s from Fidelity that Turbo Tax (learned my lesson) will not accept for 2020 and clearly states that those 1099s must be filed with an amended return for 2019. As the tax bill was around $300, once I filled out the 1040x and calculated the amount, I immediately paid it to the IRS, online, to minimize any interest. (How much interest could it be on $300, anyway) just in case it takes them 3 freaking years to get around to it!!

 

[MichaelB]

Why would it have been paid 3 times? That is confusing.

My original 1040 had an error. I omitted one transaction, which was a large sale with a small capital gain. As is their standard method, IRS calculated tax owed assuming the entire sale amount was taxable income and informed me by letter.

I calculated the amount owed, paid online and sent a letter with the necessary details. That was the first payment.

The IRS didn’t accept my response and assessed an even larger amount, based on some strange calculation. Seeing all the confusion, I chose instead to file an amended return. Because I had already paid the balance due, I didn’t pay again. The IRS wrote back indicating the balance due had not been paid and was still owed, and I should pay immediately, so I paid it a second time.

The IRS then sent a “we’ve received your document and will respond in 90 days” letter. Followed by a second, then a third. The IRS then sent a certified letter stating my amended return had been rejected because the balance had not been paid and they would proceed against me if I did not pay immediately. So I paid a third time, referencing their demand letter.

All this under the guidance of my tax advisor. He said this is not unusual and it will work itself out, but will probably take a couple more years. The money has been credited to my account, it’s there to see, as is the amended return. They are waiting for someone to review it, and that won’t happen anytime soon.

 

[martyp]

I filed a paper 1040 for my 2019 taxes in February 2020. I got a notice that they needed another document in July 2020. I got my refund in October 2020. In contrast, this year I filed an electronic return at the end of January 2021 and got a direct deposit of my refund at the end of March. That speed is about normal for me. There is a big backlog due to the Covid closure. Beyond that it must be a matter of luck and how complex your situation is.

 

[RetiredAt55.5]

I can't see this ever getting smaller, they get mail constantly..at what point do they forget the stacked up stuff and say Uncle? How can they function with millions of unopened mail piled up.

This is even more baffling since they decided to only extend the tax deadline one month.

I think if they delayed it longer, like last year, it would've given them a little more breathing room to work off some of the backlog.

Plus they had a good excuse given the last minute tax changes.

Strange.

 

[Perryinva]

Wow, how incredibly annoying that you had already paid twice before and they would not recognize that??!! Was there no way to contact anyone and tell them it was already paid.....twice!! unless it is a relatively small amount, I myself would have made an in person appointment for sure!! The government at its best.

 

[mountainsoft]

I mailed three amended returns at the end of February, all on the same day. The 2020 and 2018 returns showed up on the IRS site within a couple weeks, but oddly the 2019 didn't show up until earlier this week. All three are still in the "received" status.

 

[braumeister]

I filed an amended 2018 return last May, and although it was definitely received I have no idea when it will be processed. Only a small refund (less than $200), so nothing to be concerned about. I have great sympathy for those dealing with large amounts.

 

[freedomatlast]

They are way behind on mailed in, non-amended returns as well.