Key Takeaways
- Common Causes: Delays in tax refunds are often caused by errors, incomplete information, or additional IRS reviews.
- Status Meaning: Common tax return statuses like "Return Received", "Refund Sent", and the much feared “Still Being Processed” indicate the processing stage of your refund.
- How To Check Progress: The IRS's "Where's My Refund?" online tool is the primary way to track refund progress, and it’s easy enough to use that anyone can do it.
- Getting Serious: Other, more serious causes for tax refund delays come from mismatched information, identity verification issues, or unreported income.
- Calling the IRS: Contacting the IRS is advised only when specific conditions are met, such as a particularly long delay that’s very much out of the ordinary for the IRS.
Your tax return is still being processed, so does the online tool reads. It’s the stuff of nightmares for many. You check the IRS’s “Where’s My Refund?” tool only to find the ominous message: “Your refund is still being processed”? If so, you’re not alone. This all too common notification often leaves taxpayers frustrated and wondering why their tax refund is delayed since no actual reason is displayed by the tool.
We get your concern and we’re here to help. This guide will help you understand the most common reasons for refund delays, what the various tax return statuses mean, and what actions you can take in case you get the dreaded “your refund is still being processed” status. We’re not here to sugarcoat it: A delayed refund is straight up a bad time; but while it’s unarguably a disheartening experience, it’s important to remember that each issue has a solution. All that being said, let’s delve straight into the details and find out why your tax refund is delayed and what to do about it. Read on!
What Does “Your Refund Is Still Being Processed” Mean?
Let’s get this out of the way first: The status “Your refund is still being processed” in the IRS’s “Where’s My Refund?” tool does not necessarily mean there’s an issue with your return. So, no need to panic just now, OK? The message, by itself, indicates that your tax return is under review or has not yet completed all necessary checks for you to receive it.
What follows is getting to the bottom of the delay so you can be prepared in case something more serious is brewing, so let’s check out some possible reasons for refund delays:
- The IRS is verifying reported income and deductions. The first reason is the simplest one, which is that the IRS is delaying your refund simply because, like the message itself says, they’re still processing it.
- Additional reviews are needed for potential errors or discrepancies. Maybe you didn’t carry over a zero, or you misplaced an amount somewhere on the IRS Form you used to report your taxes. Whatever the reasons, something didn’t register correctly with the IRS’s review of your tax return, so they’re taking extra steps to go over the info.
- Your return includes claims for refundable tax credits. Even if you are eligible for refundable tax credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), your claim is required to undergo extra scrutiny by the IRS under federal law. This is to avoid any fraudulent activity, but it should go through eventually.
- Delays caused by filing your return during peak periods. If you chose to file your tax return during what’s known as “peak tax period”, like closer to the April tax deadline, you can definitely expect some delays in the processing of your refund. The IRS is dealing with a dizzying amount of “almost late” tax returns, so they’re simply taking longer to get to yours; just remember, they eventually will.
What Does Each Tax Return Status Mean?
The IRS’s “Where’s My Refund?” tool typically displays three statuses, and each of them can be confusing if you’re lacking any context for them.
The three statuses displayed by the refund tool are:
- Return Received: This means the IRS has your tax return and is actively reviewing it. At this stage, they’re really just doing a basic check for any errors, missing information, and whether you owe any back taxes or debts, standard stuff. This is where most people feel “stuck” with the message about their refund still being processed.
- Refund Approved: This one indicates the IRS has finished processing your return and approved the refund amount, meaning essentially that they greelighted your claim for the amount you wrote in. Now you’ll see an estimated refund date, although that’s not set in stone either.
- Refund Sent: Congrats! Your refund has been issued via direct deposit or check, depending on what you requested. Direct deposits typically arrive within one to five business days, while mailed checks may take several weeks (keep being patient).
When Should I Contact the IRS?
Yes, we know it’s tempting to reach out to the IRS as soon as you see the “still being processed” message, but remember that you’re dealing with the IRS here; contacting them too soon can lead to unnecessary frustration and get you no closer to actually getting the matter solved. The IRS advises waiting at least 21 days after e-filing or six weeks after mailing your return before inquiring about a delayed refund.
Also, as per the IRS’s website itself, filing a second return to try and speed things up might have the opposite effect, causing the IRS to put their processing on hold to check on the new packet of documents you sent, and then to make sure it actually matches what they already have in their hands, probably causing further delays.
When to Actually Contact the IRS
When we say you shouldn’t call the IRS “just yet” we don’t meant to not call them ever. There are some situations where it’s not only a good idea to call them and try to elucidate what’s happening with your refund, but actually necessary for the issue to be resolved.
Here are the most common situation where you’ll have to call the IRS if your refund has been delayed:
- It’s been over 21 days since you e-filed and the status has not been updated yet.
- This might come off as obvious, but if the “Where’s My Refund?” tool literally instructs you to contact them, you should contact them.
- If you receive a notice from the IRS requesting additional information, prepare your documentation and be patient as they try to fill in whatever gap is on your tax return.
- Mailing in a paper tax return is slow, but not that slow, so if it’s already been more than six weeks since you mailed a paper return, it’s time to contact the IRS and ask what’s going on.
| How to Contact the IRS: You can call the IRS at 1-800-829-1040, or visit your local IRS office (simply search for your town or city to check for the nearest available office). Be prepared to provide your Social Security number, filing status, and exact refund amount to speed things up, otherwise you’ll be asked to call back or come back later once you’ve secured that information. |
7 Reasons Why Your Refund Is Delayed
1. Errors in Your Tax Return
Even minor mistakes like incorrect Social Security numbers, typos in your name, mismatched dependent information, or simple math errors can cause delays.
What Can I Do About This?
- Double-check your return before filing.
- Use tax software or a professional preparer to minimize errors.
- Respond promptly if the IRS contacts you for corrections.
2. Identity Verification Issues
The IRS uses several identity verification measures to prevent any fraud. If they suspects identity theft or fraud tied to your account, they may hold your refund until you verify your identity.
What Can I Do About This?
- Complete the identity verification process outlined in any IRS correspondence.
- Use the IRS’s online Identity Verification Service or call the number provided in the notice.
3. Claiming Certain Tax Credits
Refundable credits like the EITC or ACTC often require additional review due to their high misuse rate.
What Can I Do About This?
- Provide accurate documentation to support your claims.
- File early to allow time for the review process.
4. Filing During Peak Times
You can start mailing in your tax return as early as January 1st but, as you might imagine, the IRS actually receives the majority of returns in April, leading to processing backlogs. The closer you file to the deadline of April 15th, the more you’ll have to wait for your return.
What Can I Do About This?
- File your return early to avoid delays.
- Opt for e-filing and direct deposit for faster processing.
5. Paper Returns and Manual Processing
Paper-filed returns take significantly longer to process than e-filed ones. Since paper submissions must be manually handled, processing them can lead to significant delays.
What Can I Do About This?
- Switch to e-filing whenever possible.
- If you must file by mail, try to make things easier for yourself by sending your return via certified mail for tracking.
6. Outstanding Tax Debts or Offsets
If you owe back taxes, child support, or other federal debts, your refund may be used to cover these obligations.
What Can I Do About This?
- Check your offset status by calling the Treasury Offset Program at 1-800-304-3107.
- Resolve any debts to prevent future offsets.
7. Random IRS Audits or Reviews
The IRS occasionally selects returns for random audits or in-depth reviews, which can delay refunds.
What Can I Do About This?
- Respond promptly to any IRS notices.
- Keep accurate records and supporting documents for your return.
How Can I Check the Status of My Refund?
To check your refund status, use the IRS’s “Where’s My Refund?” tool or the IRS2Go mobile app. You’ll need the following information:
- Social Security number or Individual Taxpayer Identification Number (ITIN).
- Filing status (e.g., single, married filing jointly).
- Exact refund amount as shown on your tax return.
Other Ways to Check:
- Call the IRS Refund Hotline at 1-800-829-1954.
- Contact a tax professional for assistance.
How Long Does It Take to Get a Tax Refund?
The timeframe for receiving a tax refund depends on how you filed and whether there are any issues with your return:
- E-filed Returns with Direct Deposit: Typically processed within 21 days.
- Paper-filed Returns: Can take six to eight weeks or longer.
- Delays Due to Issues: Returns requiring additional review or correction can take months to resolve.
The Final Word On Refund Delays…
Delays in tax refunds can be frustrating, but understanding the reasons behind them can help ease your concerns. From errors in your tax return to IRS backlogs during peak times, there are numerous factors that can slow down the process. By checking your status regularly and addressing any issues promptly, you can help ensure a smoother experience.
If you’re experiencing delays or have concerns about your refund, consider consulting a tax professional for personalized guidance. Remember, while waiting for a refund is inconvenient, most issues can be resolved with time and attention.
Why Is My Tax Refund Delayed: FAQ
- Why is my tax refund delayed?
Your refund could be delayed for several reasons, including errors in your return, identity verification issues, claiming certain tax credits, filing during peak periods, or unresolved tax debts. The IRS may also randomly select your return for additional review or audit.
- What does “Your refund is still being processed” mean?
This status means the IRS has your return but hasn’t completed processing it. It could indicate routine checks, verification of credits or deductions, or additional reviews due to potential errors or mismatched information.
- How can I speed up the refund process?
To avoid delays, file your return electronically, choose direct deposit for your refund, and ensure all information is accurate. Respond promptly to any IRS correspondence.
- Can I check my refund status without contacting the IRS?
Yes, use the IRS’s “Where’s My Refund?” tool or the IRS2Go app. You’ll need your Social Security number, filing status, and exact refund amount.
- How long does it take to get a refund after identity verification?
Once you verify your identity, it typically takes nine weeks for the IRS to process your refund. Delays may occur if further reviews are required.
- Should I contact the IRS about my delayed refund?
Contact the IRS if it’s been more than 21 days since e-filing or six weeks since mailing your return. You should also call if the IRS requests additional information or if the “Where’s My Refund?” tool directs you to do so.
Jacob Dayan
Entrepreneur • SEO Community Tax, LLC
In his capacity as CEO, Dayan has assembled a strong team of attorney practitioners, CPAs and enrolled agents to deliver superior customer service and expected results. His company Community Tax has set the standard for customer service in the tax resolution industry and is widely recognized as an industry leader by its peers. Jacob manages all day-to-day marketing efforts and business operations of Community Tax. As CMO, Jacob is responsible for all digital and offline marketing efforts.
