Frustrations Continue with Delayed Tax Refunds

-An IRS Update from the Yankee Farm Credit Tax Team.

In our last post we noted that the IRS is still plugging through a large backlog of mail, but that is not the only delay they are experiencing due to the COVID-19 Pandemic shutdown.

In a phone conversation with an IRS Agent, the Agent noted that many e-filed returns were kicked out of processing for manual review which is resulting in delayed refunds. Initially they had hoped to process returns within 10 weeks of the date received but are now admitting it is taking longer than that.

2020 Tax Returns that require manual review include Paper filed and returns with:

  • Errors, such as Recovery Rebate Credit (typical with new credits)
  • Missing or incomplete information, such as W2 or 1099 income not report on the return but reported to the IRS
  • Valid Identity theft or fraud claims tied to them
  • First time claims of the Earned Income Tax Credit or Additional Child Tax Credit
  • Injured Spouse Claims
At this time, the IRS is advising taxpayers to hang tight and not to call unless advised to when using their  "Where's My Refund Tool" tool.

More details on refund status can be found on the IRS Website at

The State of VT is also experiencing some delays but call lines are open and most refunds can be released after a quick phone call. Visit their website for more information.

Contact the YFC Tax Team with any questions.

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