Delayed Refunds Most tax refunds are received within 21 days when combining IRS e-File with direct deposit. This year there are a record number of refunds that have been delayed by weeks, and even months.
The reasons for this include remote staffing issues brought on by COVID-19 shutdowns and retroactive tax law changes during 2021 that could not be added to the automated IRS process. If your return includes the following items, it will need to be manually verified and processed by a “live” IRS employee.
Unemployment Compensation Exclusion of $10,200 per taxpayer (signed into law March2021)
Repayment of the Premium Tax Credit Suspension (signed into law March 2021)
Recovery Rebate Credit
If your tax return included taxable Unemployment Compensation and was filed prior to March, the IRS will automatically perform an adjustment starting in late May and continue throughout the summer and into the fall. If it results in an over-payment of tax the IRS will issue a refund or apply it to an outstanding tax liability. Once your return is adjusted, the IRS will send you a notice confirming the change. Additional refund information can be found at https://www.c2taxpros.com/wheres-my-refund-faq.html.
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