Navigating the complexities of IRS refunds can be a trying experience, especially when dealing with the Employee Retention Credit (ERC). ERC refund delays and the IRS’s ongoing backlog of tax returns have left many taxpayers anxious and frustrated. This guide will delve into the challenges ERC refund delays pose, provide insights into checking your IRS ERC refund status, and offer guidance on what steps to take during these uncertain times.
ERC Refund Delays: Understanding the Backlog
ERC refund delays are not isolated incidents; they are part of a broader issue involving the IRS’s backlog in processing tax returns. The situation escalated significantly due to the challenges posed by the COVID-19 pandemic and staffing shortages. In 2020, the IRS was already grappling with a backlog of 8 million unprocessed tax returns. The pandemic’s impact on labour availability affected the public and private sectors, intensifying the IRS’s difficulties.
Despite improvements in the pandemic situation, the backlog persists. By April 2022, Forbes reported an astonishing 23.5 million unprocessed tax returns, including paper returns dating back to April 2021. This backlog has severe implications, including extensive ERC refund delays. As a result, taxpayers are left waiting for much-needed refunds, with wait times estimated to range from 6 to 10 months after filing.
How to Check Your IRS ERC Refund Status: Options and Challenges
If you are frustrated by ERC refund delays, you’re not alone. However, before resorting to extreme measures, exploring options for checking your IRS ERC refund status is advisable. While dealing with the IRS can be exasperating, knowing your refund’s status is essential.
Phone Inquiry
One option is to call the IRS directly at (877)-777-4778. However, the chances of reaching a live agent are slim. During the previous tax season, only 11 million out of 195 million callers were fortunate enough to speak to a human being. The majority either encountered an automated system or couldn’t connect at all. Phone inquiries may yield different results.
“Where’s my Refund?” Tool
The IRS offers an online tool named “Where’s my Refund?” on its website. This tool is a promising option for checking your IRS ERC refund status. To use it effectively, you’ll need specific information:
- Your Social Security numbers
- Your filing status
- The exact whole-dollar refund amount
- The IRS claims that you can check your refund status using this tool 24 hours after they receive your electronic return or four weeks after mailing a paper return. However, it’s advisable to approach these timeframes with cautious optimism, considering the ongoing backlog.
Amended Return Status Checker
If you’ve filed an amended claim, you must use the IRS amended return status checker, adding another layer of complexity to the process.
Refund Delays
ERC refund delays are an unfortunate reality for many taxpayers. As you navigate these challenging times, patience and diligence are your allies. While the IRS struggles to address its backlog, exploring all available options for checking your ERC refund status is crucial. The “Where’s My Refund?” tool on the IRS website offers the best chances of obtaining information, but be prepared for potential delays.
Remember that you’re not alone in facing ERC refund delays; the situation is beyond your control. Continue monitoring your refund status, keep your records organized, and stay informed about any updates from the IRS. While the process may be frustrating, maintaining a proactive and informed approach will help you navigate these uncertain times more efficiently.
In the end, your ERC refund will arrive, albeit with some delay. In the meantime, focus on staying compliant with tax regulations, explore potential financial alternatives, and seek professional advice if necessary. As the IRS works diligently to address its backlog, your patience and understanding will be valuable assets in successfully resolving your ERC refund status inquiry.
Solutions by Mike Miller, CPA 