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IRS Return Approval Time

How long does it take IRS to approve return?

Navigating the intricacies of tax season can be daunting, and a common question many taxpayers ask is, "How long does it take for the IRS to approve my return?" Understanding this timeline helps in planning financial decisions effectively and managing expectations during the tax-filing process. In this article, we will dive into the different stages of tax return processing, factors that might affect the timeline, and what you can do to potentially expedite the process.

Typical Timeline for IRS Return Processing

The IRS processes returns in several steps, each with its own timeframe. Here is a typical timeline to give you a broad idea of what to expect:

  1. E-Filed Returns:

    • Most electronically filed tax returns are processed quickly, usually within 24 to 48 hours of submission. Once processed, you might see a refund approved within 21 days if you've opted for direct deposit.

  2. Paper Returns:

    • Paper returns take significantly longer. It can take up to six weeks or even longer for the IRS to approve a paper return. This delay is primarily due to the manual processing required for physical documents.

  3. Amended Returns:

    • If you've submitted Form 1040-X for amending a return, expect a longer wait. Processing amended returns generally takes about 16 weeks, but could be longer in busier times or if further scrutiny is needed.

Factors Affecting IRS Processing Time

While the above timeframes can be used as a general guideline, several factors can influence how fast or slow the IRS processes your return:

1. Time of Year

The early part of the tax season is usually less congested. Filing your return as early as possible can mean faster processing times. However, during peak times, like late March and early April, returns might be slower due to the sheer volume processed by the IRS.

2. Return Errors or Inconsistencies

Mistakes or discrepancies in your return can lead to delays. Common errors include incorrect Social Security information, math errors, or unmatching details from forms such as W-2s or 1099s. Verification of these mismatches can significantly slow down approval.

3. EITC or Additional Child Tax Credit

Returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) require more stringent verification processes, which can delay the approval timeline. Under the Protecting Americans from Tax Hikes (PATH) Act, refunds for such claims are typically held until mid to late February.

4. Method of Filing

As previously mentioned, e-filing is quicker than paper returns. Not only does e-filing reduce errors typically induced by human entry but also speeds up the IRS's capability to process and approve your return.

IRS Return Tracking Tools

Once you've submitted your return, it’s natural to want updates on its status. The IRS offers several tools to help taxpayers track their return status and anticipate any potential issues.

Where's My Refund?

The IRS's "Where's My Refund?" tool is a popular choice for tracking refund status. It provides up-to-date information on:

  • Return Received: Confirms the IRS has received your return.
  • Refund Approved: Signals that your refund has been authorized and the release is imminent.
  • Refund Sent: Indicates that your refund has been sent and should soon appear in your bank account or mailbox.

This tool is updated daily and requires your Social Security Number, filing status, and exact refund amount for access.

IRS2Go Mobile App

The IRS2Go app offers a mobile-friendly option to access the "Where's My Refund?" tool along with other resources, such as payment options and free tax assistance programs. It is an efficient way to monitor your tax refund using any smartphone.

Tips to Expedite IRS Return Approval

  1. Double-Check Your Information:

    • Ensure that all your personal information matches what's on file with the Social Security Administration to avoid processing delays.

  2. Avoid Last-Minute Filing:

    • Submitting returns last minute can lead to mistakes due to rushed efforts, which can consequently prolong the processing time.

  3. Opt for E-Filing and Direct Deposit:

    • Choosing to e-file and requesting refunds via direct deposit are considered the fastest and most secure methods for tax refunds.

  4. Use Reliable Tax Software Tools:

    • Utilize reputable tax software to minimize errors. These tools often have built-in error-checking mechanisms that significantly reduce the chance of mistakes.

Potential Delays and What to Do

Despite your best efforts, sometimes delays are inevitable. If you find yourself in a waiting period longer than expected, consider the following actions:

1. Contact the Taxpayer Advocate Service (TAS):

The TAS offers assistance if you’ve encountered significant IRS processing delays and have tried resolving them without success. They work independently and can sometimes expedite case resolutions.

2. Review IRS FAQs and Publications:

Frequently, the IRS updates its FAQs with information on processing issues affecting a large number of taxpayers. Checking these updates can provide clarification on expected wait times.

3. Amendment Follow-Up:

If you've submitted an amended return, consider checking its status online using the "Where’s My Amended Return?" tool. It offers similar functionalities to the "Where’s My Refund?" for amendments specifically.

Frequently Asked Questions

Why is my tax refund delayed?

Your refund might be delayed due to errors, incomplete information, identity verification needs, or backlog issues at the IRS. Claiming credits like the EITC and ACTC also result in longer processing times to ensure accuracy.

Is the IRS experiencing delays due to COVID-19?

Delays have been notable in recent years, a result of both increased workload and reduced staffing, compounded by the added work from COVID-19 related credits and stimulus payments. It’s possible that processing could be slower, especially for paper returns.

Can I check my refund status through my tax preparer?

While you may consult your tax preparer, the IRS’s "Where’s My Refund?" tool is the most direct source for refund updates. Your preparer can help verify your filing details are correct and review potential errors on your return.

In conclusion, understanding the timelines and processes related to IRS return approvals can significantly relieve the anxieties commonly associated with tax filing. By adhering to best practices, staying informed through the IRS’s tracking resources, and maintaining patience during waiting periods, the tax season becomes a more manageable experience. Be proactive, diligent, and ensure you use the resources available to stay updated on your return’s status. For more nuanced guidance, consider exploring related content on navigating tax complexities on our website.