The IRS is still experiencing a significant backlog in unprocessed tax returns, as millions of taxpayers continue to wait for federal tax refunds.
As of July 2021, there were still 35 million returns yet to be processed. The 2020 shutdown, economic recovery payments, expanded tax credits, and the implementation of new tax laws have contributed to continued delays.
In addition to the delayed returns, the IRS is very shorthanded, which means they are unable to provide telephone assistance most of the time. The best way to reach the IRS by phone is to call 800-829-1040 at 7:00 a.m. as soon as the phone lines open.
Paper returns are experiencing the longest processing delay, with some taxpayers waiting months after filing to receive a refund. Certain tax credits or issues needing extra review are also requiring additional IRS resources and contributing to the buildup.
While the waiting is frustrating, the best thing to do is to be patient as the IRS continues to work through the backlog.
Every situation is different and unique. If you have tax questions and would like to speak to an accounting professional, please contact BSB today. We will help you plan according to your specific circumstances.