MANY taxpayers are upset about the prolonged tax refund delay as some blame the government and IRS for the hold up.
Some taxpayers have been waiting for three or more months to receive their refunds since filing their returns in February and blame the IRS, saying that the agency should have resolved any issues by now since similar delays occurred in 2020.
The Internal Revenue Service (IRS) typically sends out tax refunds within 21 days after receiving tax returns, but this year the delay has been extended to six or eight weeks for some people, according to NBC affiliate WGAL.
"Ten days came and passed and then it was two weeks. Then it was three weeks. Then it was a month. Now it's two months going on three months," one of the taxpayers in Chicago Cheryl Ondratschek told ABC 7-I Team.
"That just doesn't make sense on a return that had nothing unusual. Nothing fancy no stocks involved. Pretty straightforward," she added.
Another Chicago resident identified as Elaine told ABC 7-I Team that the pandemic should no longer be an excuse for those delays.
"Stores are opening, grocery stores have gotten their act together, why can't the government get their act together," she said.
The delays are attributed to a number of reasons including missing documents, incorrect W-2 or 1099 forms, or fraud, IRS spokesperson Luis Garcia told ABC 7-I Team.
The agency is also grappling with pandemic-related challenges and is preoccupied with stimulus payments, Garcia added.
"There's a lot of tax law changes that have come through, there's the stimulus payments that have to be processed in a way that is efficient and avoids fraud and we've had 10 straight years of budget cuts so that may have something to do with it as well,” he told ABC 7-I Team.
The IRS is holding around 29 million returns for manual processing, according to the National Taxpayer Advocate.
People have been waiting for thousands of dollars in tax refunds from the IRS.
Approximately 10million taxpayers may get a $10,200 payout if they filed their tax returns before the tax break in the American Rescue Plan became law.
The American Rescue Plan Act signed on March 11 included a $10,200 tax exemption for 2020 unemployment benefits.
The exemption meant that checks sent during the pandemic weren't counted as earned income.
In other words, you won't get taxed on the COVID-19 relief you received in 2020.
The IRS started rolling out the first refunds last week and will continue to do so through the summer, but some people are running out of patience.
The agency said it would start issuing refunds to people with the least complex tax returns, such as those who didn't claim children.
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