Tax season can be a stressful time, with looming deadlines and the anticipation of tax refunds. The process of filing tax returns and awaiting their processing can test one’s patience, particularly when delays occur. Understanding the reasons behind these delays and knowing the current status of IRS processing can alleviate some of this anxiety.

Overview of the Current Tax Season

This year’s tax season has seen some changes compared to 2023. The Internal Revenue Service (IRS) has reported a slight decrease in the number of tax returns received, with a 1.7% drop compared to last year. Interestingly, there has also been a 2% decrease in the number of returns processed compared to 2023, as noted by Forbes.

Another key factor to consider is the adjustment in the tax filing window for this year. It opened a week later than usual and is set to close nine days sooner than in 2023. These changes could contribute to the sense of urgency and concern among taxpayers about delays in their tax return processing.

IRS Processing Time for Tax Returns

A common question during tax season is: How long does it take for a tax return to be processed? The IRS generally issues most refunds within 21 days of receiving a tax return. However, this timeline can vary based on several factors, which are crucial to understand for anyone awaiting their refund.

Using the “Where’s My Refund” Tool

To assist taxpayers in tracking their returns, the IRS offers the “Where’s My Refund” tool. This online tool provides updates on the status of individual tax returns and is updated once daily. It’s a valuable resource for those anxious to know the whereabouts of their refunds.

Reasons Behind Tax Return Delays

Tax returns can experience delays for several reasons. The IRS outlines the following common causes:

1. Mailed Returns: Returns sent by mail generally take longer to process than those filed electronically.
2. Errors or Incomplete Information: Mistakes or missing information in a tax return can lead to delays as the IRS needs additional time to correct or request further details.
3. Need for Further Review: Some returns require additional scrutiny, which can prolong the processing time.
4. Identity Theft or Fraud Concerns: Returns suspected of fraud or identity theft are thoroughly reviewed, which can delay processing.
5. Bank Referral for Suspicious Activity: If a return is flagged by a bank for unusual activity, it undergoes additional examination.
6. Injured Spouse Allocation Form: Returns that include this form may take up to 14 weeks to process, significantly longer than the typical timeframe.

Average Tax Refund for This Year

As of March 1, the average tax refund issued by the IRS stands at $3,182. This amount represents a 5.1% increase compared to the same period in 2023. However, it’s important to note that these figures might change as the season progresses. For instance, Barrons reports that refund amounts dropped by 13% between March and April in the past.

Conclusion

Understanding the intricacies of tax return processing and being aware of potential delays can help taxpayers navigate the tax season more effectively. Staying informed about changes in the tax filing window, utilizing tools like “Where’s My Refund,” and being aware of the common reasons for delays can provide peace of mind during this often-stressful time. Remember, preparation and patience are key when dealing with tax matters.