Why is My Tax Return Still Processing in 2019?

Why is My Tax Return Still Processing in 2019?

Many taxpayers have encountered the frustrating situation where their tax return is still processing months after filing. Several factors can contribute to this delay. Knowing the reasons and taking appropriate actions can help alleviate the anxiety and ensure you receive your refund in a timely manner.

Common Reasons for Tax Return Processing Delays

1. Missing or Incomplete Tax Forms

The Internal Revenue Service (IRS) requires all necessary and complete tax forms to process your return efficiently. If key information is missing or the forms are incomplete, the IRS cannot complete the processing, leading to significant delays. Commonly, this happens if you missed a schedule or provided insufficient details in your tax documents.

2. Manual Review by the IRS

Not all tax returns are handled electronically. The IRS may select certain returns for manual review. These returns are chosen based on various criteria, including random selection or indications of potential errors. Manual review can take months, significantly extending the processing time.

3. Claiming Certain Tax Credits

Claiming specific tax credits, such as the Earned Income Tax Credit (EITC) or Child Tax Credit, often triggers a manual review. These tax credits require additional scrutiny, leading to longer processing times as the IRS verifies the eligibility of the claims.

4. Complicated Tax Returns

Tax returns with complex income or deductions, such as Schedule C business income, rental income, capital gains or losses, or other financial complexities, are typically reviewed more thoroughly. This thorough review process can significantly increase the time it takes to process the return.

5. History of Filing Incorrect Returns

If you have a history of filing incorrect returns, the IRS might flag your account for extra scrutiny. Any recent return with errors or inconsistencies can cause delays as the IRS verifies the accuracy of your current filing.

6. Processing Delay at the IRS

Given the high volume of returns processed each year, the IRS occasionally experiences significant backlogs. Due to these processing delays, some returns may get stuck in large backlogs, leading to extended processing times.

7. Identity and Refund Fraud

The IRS may delay processing your return if they suspect identity or refund fraud. To ensure the security of your refund, the IRS may request additional verification, which can take more time to resolve.

What to Do If Your Tax Return is Still Processing

If your tax return is still processing after four months, the IRS recommends that you contact them after 120 days if you have not received your refund or an update on the status of your tax return. Here’s how to proceed:

Contacting the IRS

To check the status of your tax return, you can contact the IRS directly. You can do this through phone, online chat, or mail. Ensure you have your tax ID number and any previous filing information handy.

Using the IRS’s Online Tools

The IRS offers several online tools to help taxpayers track their returns, including the “Where's My Refund?” function. Access this tool through the official IRS website to get an updated status report on your tax return.

In conclusion, while tax return processing delays can be distressing, understanding the common causes and taking appropriate steps can help you manage the situation more effectively. Contacting the IRS or using their online tools are proactive measures to ensure your refund is processed as quickly as possible.

Frequently Asked Questions (FAQs)

Q: How long does it usually take for a tax return to process?

The processing time can vary widely depending on the complexity of the return, additional verification needed, and current IRS workloads. Typically, simple returns may be processed within a few weeks, while complex or flagged returns can take much longer.

Q: What should I do if my tax return is still processing after 4 months?

After 120 days, contact the IRS to inquire about the status of your tax return. Use their official channels for secure and reliable communication. You can also check the status online through the “Where's My Refund?” tool.