Welcome

Tried to call the IRS lately? Nobody answers the phone (or so it seems). Return processing is slow. As June 25, 2021, there were approximately 16.7 million 2019 and 2020 tax returns and almost three million amended returns waiting to be processed*.   Then there’s the advanced Earned Income Credit and unemployment over payment stimulus checks to calculate and issue. Bottlenecks also affect tax practitioner resources. It’s hard to get through on the IRS dedicated tax practitioner phone line.

So the IRS is overworked and overbooked.  What can a taxpayer waiting on an IRS payment do?

1.  Be patient, there are many in the same situation
2.  Watch mail for IRS and Tax Notices and answer promptly.
3. Continue to check the “Where’s My Refund” tool on the IRS website (www.irs.gov) 
4. If trying to call the IRS (800-829-1040), call between the hours of 7-8 am Tuesday through Thursday. Have your tax return, marital status and refund amount handy. Be prepared to call multiple times. During 2021 only nine out of a hundred calls were getting through to a “live” customer service representative*.
5. If IRS indicates refund has been issued but it was not received consider filing a trace (IRS Form 3911-www.irs.gov type “3911” in search box).
6. There will be a reconcile of the last stimulus payment ($1,400 per taxpayer) and the Advanced Earned Income Tax payments on the 2021 tax return. Keep records. If payments weren’t received so indicate on the 2021 Tax Return. If rules are the same, non received stimulus and Advanced Earned Income Credit should translate into a credit on the 2021 tax return.
7. Talk to your tax professional and adjust tax withholding so that most of the refund is received during the year, so the IRS has less refund to issue.  IRS does not pay interest on over payments held during tax year.

The world has changed. COVID procedures continue to affect tax agencies. Be patient and willing to work with the “new” normal.

*from Kiplinger Tax Letter October 1, 2021 edition