IRS Mail and Tax Return Processing Delay Continues

In this post, we take a look at the IRS tax return processing delay. We’ll explore why both mail and tax processing are taking longer than anticipated and how they have negatively affected both the 2020 and 2021 tax filing seasons.

COVID-19 hit the world hard in 2020 and the IRS was not excepted from the significant impact felt.

IRS offices were closed for a number of months, which resulted in a delay in processing millions of tax returns and other taxpayer correspondence. The IRS has yet to open and process several million business and individual tax returns, which were filed on paper for the 2019 tax year.

Many taxpayers are frustrated that they have not yet received refunds or have received past due notices even though they have already filed the tax return and made payment. Likewise, other requests have been sitting in IRS offices unprocessed.

As a result of the IRS mail and tax return delays:

Lawmakers have requested the IRS to stop automatically sending past-due notices.
2020 tax return filings may be affected if 2019 tax returns have not been processed.
As the 3rd round of the Economic Impact Payment (EIP) distribution is underway, some taxpayers may experience a delay of EIP receipt if their 2019 tax returns have not been assessed.
For tax changes that have retroactive effect to 2020 and prior years, many taxpayers may need to file an amended tax return which, again, increases the volume of tax returns the IRS will have to process.

With all the uncertainty, we are likely facing another very difficult tax season.

Manning Elliott is Here to Help

Speak to our US tax advisor if you have any questions regarding the IRS tax return delays, mail delays, or your 2020 US Individual Tax Returns. Please contact the Manning Elliott Tax Team by submitting a contact form inquiry.

This content is believed to be accurate as of the date of posting. Tax laws are complex and are subject to frequent change. Professional advice should be sought before implementing any tax planning. Manning Elliott LLP cannot accept any liability for the tax consequences that may result from acting based on the information contained therein.