tax refund taking 3 months and counting

[cat4ever]

E-filed in late Feb with expected refund of 12K. Still no word from IRS other than: "your return processing has been delayed beyond the normal timeframe...". This is starting to seem excessive without any other follow up from them, or is this more common than I'd think?

Actually I should be getting 8% interest on it now, so not really in any hurry for it at this point.

 

[RetiredAt55.5]

E-filed in late Feb with expected refund of 12K. Still no word from IRS other than: "your return processing has been delayed beyond the normal timeframe...". This is starting to seem excessive without any other follow up from them, or is this more common than I'd think?

Actually I should be getting 8% interest on it now, so not really in any hurry for it at this point.

In the same boat, but I've only been waiting 6 weeks with an expected refund of 19k. My return is almost identical to last year, and last year it only took about 3 weeks.

8% sounds really high - I thought it would be closer to 3%.

 

[cathy63]

It’s pretty common if the refund is a large part of your AGI or if you have a Schedule C with high expenses or a loss. It’s in a queue for a human to look at and once they get to it they may or may not have more questions. If the refund is large because of something like ACA premium tax credits not taken in advance, they’ll probably just release it without further contact.

 

[Flieger]

Are those sizable refunds due to too high withholding, or some other driver? Just curious.

Flieger

 

[Dtail]

With the IRS staffing underfunded, I now try to make sure there are taxes owed for the 6 returns I am responsible for.

 

[ransil]

I finally got my 2022 refund 3 weeks ago, seems they lost it ( mailed in)

 

[Zathras]

I find sending it in electronically is smoother and gets a very fast return.
If you have the option, it may be worth trying next year.

 

[cat4ever]

I did file electronically, and setup direct deposit for the refund. My refund is high because I suck at estimating pension withholding and capital gain estimated taxes (which I'm proud of so pleas no suggestions). Also my income has changed quite a bit these last couple years due to my recent retirement, which is also probably why my return has been tagged for closer inspection. But even for that, 3 months seems a little excessive.

 

[cat4ever]

With the IRS staffing underfunded, I now try to make sure there are taxes owed for the 6 returns I am responsible for.

That would require detailed calculations to be performed (i.e. work) I retired to avoid work

 

[cat4ever]

8% sounds really high - I thought it would be closer to 3%.

According to this it's 8%: IRS Refund Interest Rates
Although they don't start paying it until April 15.

 

[RetiredAt55.5]

According to this it's 8%: IRS Refund Interest Rates
Although they don't start paying it until April 15.

Nice, they can take their good, old time with mine than!

Here's confirmation from the horse's mouth -

Interest rates remain the same for the second quarter of 2024 | Internal Revenue Service

 

[RetiredHappy]

Our refund was about $7K last year and it took 3 months. After waiting for 2 months, we got a mail that wanted us to verify our IDs for the refund. We had to upload our DLs and money was released into our account after another month.

This year's refund was about $2.5K and it took about a month. It did not ask for our IDs like in the previous year.

I will try to get our refund down to about $1K next year so that processing goes faster.

 

[Dtail]

That would require detailed calculations to be performed (i.e. work) I retired to avoid work

I understand but it also depends how complex the return is. No schedule C or E for these returns. Also as a one time piece of work, I set up the SS calculation in Excel (most complex formula is a "@If formula".
I hear ya though.

 

[Willers]

Two years ago my return was also held up likely because of a large gain from a home sale. It finally was paid just under 6 months later. I'd just try to be patient and remember that they will pay interest on the balance due. I did get a small chuckle when, of course, I got a 1099 the next year for the interest paid. They giveth and then taketh.

 

[Koolau]

With that kind of interest, I'd just let it ride as long as they want to keep it. (Heh, heh, you know it's safe!) Nice.

 

[NewEnglander]

Last year I file electronically in March. My 10K+ refund was delayed , I called several times, each time they said it was "in review" , I finally received my refund with interest in late August. I never found out why it was delayed but it could have been because I took a large energy credit for a solar and heat pump installation and /or the large refund amount? and yes I did receive a 1099 for the interest "income" they paid me.

 

[jebmke]

That would require detailed calculations to be performed (i.e. work) I retired to avoid work

perhaps, but perhaps not. For many years I have been doing ES taxes based on safe harbor. Then in early January after I know all I need to know, I decide to reduce or eliminate Q4 or just let the Q4 transaction I set up in EFTPS ride. One one or two edge cases, even eliminating Q4 resulted in a refund so it isn't bullet proof.

 

[Sunset]

My returns this year were quick, but I'm still waiting for a return from last year that has been processing for 1 year , expecting a $5K refund on that one...

 

[MarieIG]

Our refund was about $7K last year and it took 3 months. After waiting for 2 months, we got a mail that wanted us to verify our IDs for the refund. We had to upload our DLs and money was released into our account after another month.

This year's refund was about $2.5K and it took about a month. It did not ask for our IDs like in the previous year.

I will try to get our refund down to about $1K next year so that processing goes faster.

My CPA files for me but I take my check snail mail. Last year and this year I took a 10k refund. The check arrived in about 8 -10 days from his filing.

 

[pb4uski]

Moral of the story: manage your tax liability so that you owe them a little... no need to wait for a refund.

 

[EastWest Gal]

In the same boat, but I've only been waiting 6 weeks with an expected refund of 19k. My return is almost identical to last year, and last year it only took about 3 weeks.

8% sounds really high - I thought it would be closer to 3%.

According the IRA website, they pay 8% per year; I think it was the same last year. I got my refund in December 2023 (~$25K) and I got $1200 in interest. It will be reported as income for TY 2024. I usually do better managing our taxes, but we made a very large donation that was unexpected in TY 2022.

 

[Dtail]

Moral of the story: manage your tax liability so that you owe them a little... no need to wait for a refund.

Agree, but OP stated in post #9, too much work. lol

 

[pb4uski]

Seems to me that chasing a refund is more work than managing taxes to owe a little... certainly less frustrating.

 

[cat4ever]

Nah, just check the mailbox every day (which I do anyway ). Speaking of which, I got another letter last week telling me it's going to be another 60 days, and they still don't need anything else from me. I guess at 8% interest it's not a big deal, as long as I don't see the dreaded A word.

 

[rmcelwee]

Moral of the story: manage your tax liability so that you owe them a little... no need to wait for a refund.

I sent the IRS a payment of $386 this year and I am still in "Accepted" status. I'm worried that this means they are going to audit me.