With less than two weeks till tax day, the Internal Revenue Service (IRS) has made significant headway, having already issued roughly 58 million refunds totaling $189 billion.
Most refunds are issued within 21 days if they are filed electronically and are error-free, according to the IRS. However, there is a chance that delays will occur due to a variety of causes.
According to CNBC, the average return is $3,263, over $450 more than last year's sum of $2,815.
"We urge extra attention to those who received an economic impact payment or an advance child tax credit last year," IRS Commissioner Chuck Rettig said in a statement. "People should make sure they report the correct amount on their tax return to avoid delays," he continued.
The IRS has warned Americans not to rely on "receiving a refund by a certain date," according to personal finance expert Susan Tompor of the Detroit Free Press. One of the main reasons for the delays appears to be government-issued stimulus checks and credits and how they are reported on the returns-even a minor typo can lead to painfully long delays.
"The IRS is seeing mistakes in claiming the recovery rebate credit once again this year-and the child tax credit-and continues to warn taxpayers of potential delays. It could take several weeks to resolve some of these issues," Tompor wrote.
Furthermore, the Internal Revenue Service (IRS) is still working to clear its large backlog of unprocessed tax returns and communications from past years. Rettig recently told the House Ways and Means Committee that the agency will make significant progress before the end of the year.
Without any unforeseen circumstances, the IRS will be "healthy" by the end of calendar year 2022, and will enter the 2023 filing season with regular inventories, he said.
Keep in mind that there are more convenient ways to track refunds. "Tracking your tax refund has never been easier," according to GOBankingRates.com. There are free resources accessible, such as the IRS's 'Where's My Refund?' 'tool and USPS Informed Delivery, which enable taxpayers to track their tax refund and know when it will arrive."
Taxpayers can use the "Where's My Refund?" tool by visiting IRS.gov or downloading the IRS2Go app. And an update is available twenty-four hours after the IRS receives an electronic filing or four weeks after submitting a paper return. The app is often updated once every day.
Those receiving a paper check in the mail can sign up for USPS Informed Delivery to receive updates on its delivery status. Simply go to the USPS Informed Delivery page, click "Sign Up for Free," and follow the prompts.
