The IRS is saddled with a massive backlog of unprocessed income tax returns running into millions and also past correspondence. And this is severely affecting the normal routine whereby the IRS gives tax refunds within three weeks of filing in cases of electronic filings that are error-free. And among the major causes of delay are stimulus checks and other credits.
The calculation and distribution of stimulus checks to nearly the whole population of America has put a huge additional burden on the IRS for the past couple of years, with tax filers confused about the exact filing process.
The IRS has noticed a vast number of errors in tax filers claiming their RRC this year once more. The same is the case with the Child Tax Credit and the IRS has warned taxpayers that this will lead to a huge delay as they tackle the enormous numbers. The tax authorities have spoken of several weeks of delay in processing the stimulus check issues.
Errors Due To Failure To Mention Receipt Of Stimulus Check Amount
Experts have said that many tax filers have totally failed to mention receiving the stimulus check last year while they attempted to claim their RRC on their income tax returns for 2021.
In case of such errors, the IRS has advised the taxpayer not to take any action on their own. The IRS will manage it, but the taxpayer can expect a prolonged wait that could stretch from 6 to 12 weeks before the tax agency can manage to resolve such errors.
The tax filer could face interest and penalties if they owe the IRS after they make the necessary corrections. In these cases, it is better to adjust the returns and pay before the deadline passes on April 18.
Despite the stimulus check issues along with budget and staffing issues faced by the IRS, around 52M people have already received their refunds this year, with an average of $3,305 this year. is a 13% spike over last year’s average.
