If you’ve submitted your federal tax return and are checking the IRS Where’s My Refund? tool to find out the status of your refund, you may be wondering what “your return is being processed” means. It means the IRS “got your tax return, so you don’t have to sweat that there was an issue with them receiving it,” says Howard Samuels, a certified public accountant at Samuels & Associates in Florham Park, New Jersey. Typically, the IRS processes most returns and issues refunds within three weeks or 21 calendar days of receipt. But recently, there have been logjams. One way to speed things along is to make sure you file electronically with direct deposit, avoiding a paper tax return, IRS commissioner Chuck Rettig said in a statement on January 10, 2022. Here’s what you can do if you suspect your federal tax refund is delayed or you need more information about your return. How to contact the IRS: ‘Your best bet is to call first thing in the morning’If there’s a backlog, prepare to wait a few more weeks than normal, Samuels says. “At this point I would say sit tight for at least four to six weeks. After that, you may want to call the IRS to find out what’s going on,” he says. In 2021, taxpayers who called to ask about their financial situations had just a 1 in 9 chance of being answered — and those who did get through lingered on hold for an average 23 minutes, according to an annual report from the Taxpayer Advocate Service. “Your best best is to call first thing in the morning as soon as the IRS opens at 7 a.m. ET,” Samuels says. “I’ve also heard some people have luck when they call later in the day around 6 p.m. or 6:30 p.m. [Eastern] right before the IRS closes at 7 p.m.” The IRS owes you interest on late refundsIf it takes a while for you to get your money from the government, there is a silver lining, Samuels says: “The law requires the IRS to pay interest on any delayed refund checks.” If you don’t receive a refund within 45 days of the tax filing deadline, the IRS will owe you interest. In 2020, the IRS owed many taxpayers interest on late refunds. The average interest payment was $18. “If you’re waiting on a bigger refund, that could be real interest, and it compounds daily,” Samuels says. This content is provided for informational purposes only and is not intended to provide, and should not be relied on for, accounting, legal, or tax advice. Consult your accountant, tax, or legal advisor regarding such matters. This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Article contributors are not affiliated with Acorns Advisers, LLC. and do not provide investment advice to Acorns’ clients. Acorns is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.  When the status displays ‘processed with refund due’, it means that the tax return has been processed and the tax refund will likely be issued to you in 20-45 days after the ITR processing date. If the status shows ‘refund rejected’, it could mean that your tax liability has been re-calculated NEW DELHI: If the tax you have paid in a financial year exceeds the actual tax liability, the Income Tax (IT) department refunds the excess tax paid after you have filed your income tax return (ITR). You will know if there’s a tax refund due while preparing your ITR. However, the final refund amount and whether you are eligible for one is determined only after the ITR is processed by the IT department. It’s been nearly 40 days since the ITR due date has passed and if you still haven’t received your refund, you should check its status on the e-filing IT portal or tin-nsdl website. The tin-nsdl website asks for the taxpayer’s PAN and only displays whether the refund has been sent by the assessing officer (AO) to their bank account or not. You cannot check the status of your ITR and in a case where the AO has re-calculated your taxable income that has resulted in a higher tax liability or no tax refund, the same is not displayed on tin-nsdl website. Full information on the ITR can only be gained from the income tax e-filing portal - www.incometax.gov.in On the IT portal, after logging in, click on the e-File tab and select ‘View Filed Returns’ under ‘Income Tax Returns’ option. Select the relevant assessment to check the ITR status. If it shows ‘under processing’, that means your ITR is still not processed and the status of refund will be displayed only after the tax return is processed by the tax department. When the status displays ‘processed with refund due’, it means that the tax return has been processed and the tax refund will likely be issued to you within 20 to 45 days after the ITR processing date. If the status shows ‘refund rejected’, it could mean that your tax liability has been re-calculated by the AO. The reason for rejection will be displayed and accordingly, you will get an intimation from the IT department seeking additional tax or intimation about rectification needed in the ITR, as is the case. In this case, you must file a rectification return under section 139(4) or pay the additional tax. Once you file the rectification return and there’s a refund due, you will have to raise a refund demand from the IT portal. It can be submitted through ‘Refund Reissue’ option in the services tab. Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter. |
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