Discussion:IRS Refund Delays for 2009 Returns

There are no reasons to expect the refund to be delayed - her tax situation is very clean - so I googled a bit. I found an unofficial discussion about an IRS processing glitch that has delayed many refunds since late February.

The processing glitch apparently pushed a large number of e-filed returns into a manual review. Many affected taxpayers are getting notices saying their returns are being reviewed. In the meantime, the IRS "expected refund" date keeps getting changed and pushed later. It appeared that returns filed through many tax software companies were affected.

My software company hadn't heard of this. Does anyone know anything more?

The IRS has disbled the "Where's My Refund" page on the IRS web site, saying they are having technical difficulties now.

I wonder if this has happened to returns filed by all the software companies. I use Drake, and have seen postings from people using TaxAct, plus a lot from Turbotax and the Block free file.

The unofficial reasons I'm reading are that the blizzard shut down the computers and the Treasury Department, which issues refunds, so there is a backlog. Also, the plane crash in Austin disabled part of a main filing center. I don't know if these are true, but people sure need the money this year, and it would be nice to know what to expect.

The IRS has disbled the "Where's My Refund" page on the IRS web site, saying they are having technical difficulties now.

I wonder if this has happened to returns filed by all the software companies. I use Drake, and have seen postings from people using TaxAct, plus a lot from Turbotax and the Block free file.

The unofficial reasons I'm reading are that the blizzard shut down the computers and the Treasury Department, which issues refunds, so there is a backlog. Also, the plane crash in Austin disabled part of a main filing center. I don't know if these are true, but people sure need the money this year, and it would be nice to know what to expect.

The IRS has disbled the "Where's My Refund" page on the IRS web site, saying they are having technical difficulties now.

I wonder if this has happened to returns filed by all the software companies. I use Drake, and have seen postings from people using TaxAct, plus a lot from Turbotax and the Block free file.

The unofficial reasons I'm reading are that the blizzard shut down the computers and the Treasury Department, which issues refunds, so there is a backlog. Also, the plane crash in Austin disabled part of a main filing center. I don't know if these are true, but people sure need the money this year, and it would be nice to know what to expect.

Will80

Here's my question...if the IRS already "accepted" the return (which they have) and if the client has already received their state refund (which they have), then can I assume that the names, spelling, SSN's, dates, etc of all dependents on the return were correct and accepted? If there was a problem with that, they would have already notified the client or me, correct?

I'm just trying to make sure I've done everything correct for the client.

Pennsylvania talks out of both sides of its collective mouth. They want efiling, but they make it so damned difficult. This morning I must fax three Delaware and one New York returns, signed by the taxpayer, to back their claim for credit for other states. Does any other state require this?

And don't get me started on all the tin pot local taxes in PA, all with different interpretations of the rules. HA Berkheimer permit Philadelphia Wages taxes to offset all local taxes up to that tax amount; others only permit the offset to the extent of 1% of Philadelphia wages (or whatever the local rate is).

What tax program are you using? ProSeries Professional does not support e filing PA S corp.

Oh - maybe you're using form 8453 instead of pin & 8879??

I tell every client that the refund SHOULD be there by such and such date and that the IRS is USUALLY good about it, but after it leaves my office I have no control and we're happy to investigate issues but that there will be a charge. I give every client a little "Where's my Refund" how to sheet. Tells them step by step how to work the IRS check my refund and then for the state as well.

Now granted, we don't follow through on the charging <yet> but the threat and the handout eliminates a lot of the issues.

But, as Steve said, have them come in in July so their withholdings can be adjusted.

"Your refund may be reduced to pay a past due obligation such as child support, another federal agency debt, or state income tax. If this applies to you, the Financial Management Service, who issues IRS refunds, will send you a notice informing you of any offset they have made. The details of the debt are not provided to the IRS. Please do not call us to inquire about the details because we will not be able to answer your questions. Instead, direct any questions you have about the offset or debt to the agency identified on the notice."

I can only imagine CA has some kind of funny money grab in place, although the client had NO CA source income.

Asheville=Appalachia

If you think about it, there is so much new (L, M, AOC etc) this year, and IRS is also under pressure to have everyone on board with efiling. These two factors mean delays as I suspect they have found bugs both in their software and that of providers. They probably should have not permitted AOC credits on efiled returns because $1000 bucks can flow from the Treasury with a snap of the finger.

Do you know what has six breasts and nine teeth?

The night shift at the Waffle House down the street from my office.

I'm hoping that this means the delays have been resolved for all of our clients.

I advised her to call the IRS if she wished and they told her that they did not see any problems, but that the return was just still being processed. She is expecting a fairly large return due to a couple of credits she is eligible for.

Based on what your clients are seeing, would you think her refund might be next Friday (3/26)? Also, I have we ever been able to determine when the IRS updates the Where's My Refund site? I know they update it Monday overnight into Tuesday morning from my own personal experience. Surely they update it more than once per week.

My client who was delayed was a first time efiler. My regular efilers have gotten their refunds on schedule. This sounds like the answer to the what's happened.

Will80, I don't know if the WMR information is always accurate, but it has been for the client's whom I've watched.

The first-time efiling delay should be interesting next year when nearly everyone is required to efile.

I always send the Federal tax return on it's own, and then I will submit CA once the Federal return gets accepted. CA will accept almost anything; they don't verify SSNs or ITINs-- nothing. CA wants everything to go electronic-- this has been their goal for some time, and they force practicioners to e-file everything. The practicioner has to get the client to sign an opt-out waiver NOT to e-file (CA FORM 8454).

Here are some other delays, just an FYI:

Alabama reports say several weeks delay is possible due to the relationship between the Education Trust Fund (ETF) and state income tax revenue.

California says state could run out of cash before April. Some payments, like income tax refunds, might be delayed for a few weeks (surprise, surprise).

Georgia says state taxpayers who file paper returns may experience delays due to budget cuts and staff layoffs. Electronic return filers have a better chance of avoiding delays.

Hawaii Refunds will be delayed until July 1, 2010. Delayed refunds include individual, corporate, and fiduciary income tax returns.

Iowa says unpaid parking tickets could delay receipt of an Iowa tax refund.

New York Local news reports says budget proposals might put state refund checks on hold until May, but nothing has been decided yet (looks like NY and CA are in the same boat).

North Carolina Local news report says state tax agency has started to delay refund checks for individuals and businesses.

First quick background on the question. I e-filed for a client and it was accepted on 3/6/10, "Wheres My Refund" website originally said "processing" and "should receive by 3/23". On the Tuesday of last week, the WMR website changed to "processing...should receive by 3/30" so they basically backed it up a week.

The client is taking the adoption tax credit and getting a rather large refund (a little over 10K). The client called IRS last week and they said "still processing".

Okay the update. The WMR website did not update for the client this morning (Tuesday) like it did last Tuesday. It stayed the same and still says "processing...should receive by 3/30".

So I advised the client to call the IRS this morning and ask for the status. The agent told her that the return was finished processing and should be deposited on this Friday (which will be 3/26).

Questions I need advice on: If the agent told the client one thing (finished processing, will be deposited this Friday) then is that to be believed or do you go with what the WMR site still says?

I had heard that the site will change/update right before the deposit?

Next, I had heard from a CPA friend that refunds over 10K are not direct deposited but mailed, is that true? This is the first return I have done that is over 10K. The agent told the client that the money would be deposited Friday, which I assume means direct deposit.

Any thoughts or advice? This is a very nice family who have been loyal customers of mine.