Tax Memo - IRS Tax Refunds - Your Questions Answered

Here are the top 21 questions I get regarding IRS Refunds.

Q1: How quickly will I get my refund?

The IRS issues most refunds in less than 21 calendar days.

Q2: What is the best and fastest way to get information about my refund?

Use the IRS2Go mobile app or the Where’s My Refund? tool. You can start checking on the status of your tax return within 24 hours after they have received your e-filed return or 4 weeks after you mail a paper return.

Q3: Will I see a date for my refund right away?

Where’s My Refund? will not give you a refund date right away. They must first receive your tax return and then they have to process it and approve your refund. Where’s My Refund? will give you a personalized date once your refund is approved.

Q4: Will calling the IRS help me get my refund any faster?

Calling the IRS will not speed up your refund. The IRS phone and walk-in representatives can only research the status of your refund if it has been 21 days or more since you filed electronically, more than 6 weeks since you mailed your paper return, or Where’s My Refund? directs you to contact them. If they need more information to process your tax return, they will contact you by mail. Otherwise Where’s My Refund? has the most up to date information available about your refund. Use the IRS2Go mobile app or use the Where’s My Refund? tool. Both are available 24 hours a day, 7 days a week.

Q5: How will I know if the IRS received my tax return and if my refund is being processed?

Use the Where’s My Refund? tool to follow your tax return from receipt to issuance of your refund. While your tax return is being processed you can follow it through three stages: Return Received,Refund Approved and Refund Sent.

Q6: When can I start checking on my refund status?

You can start checking on the status of your return within 24 hours after they have received your electronically filed tax return or 4 weeks after you mail a paper tax return.

Q7: How often does Where’s My Refund? update?

Where’s My Refund? updates are made no more than once per day, usually at night. So there is no need to check more often.

Q8: What is happening when Where’s My Refund? shows the status of my refund is: Return Received?

This means they have your tax return and are processing it. Your personalized refund date will be available as soon as they finish processing your return and confirm that your refund has been approved. They issue most refunds in less than 21 days.

Q9: How long will it take for my status to change from Return Received to Refund Approved?

Sometimes your status may change from “Return Received” to “Refund Approved” in just a few days, but it could take longer and a date will not be provided until your refund has been approved. However, if Where’s My Refund? shows the status of your refund is: Return Received they have received your tax return and they are processing it.

Q10: Does Where’s My Refund? always display my refund status with the tracker showing three steps?

No. In some cases the tracker graphic will not be shown if your return is being reviewed prior to step two: “Refund Approved,” and instead an explanation or instructions will be provided depending on the situation. This can happen even if you previously checked Where’s My Refund? and it showed the status as “Return Received” along with the tracker. In these cases be assured that they have your tax return and they are processing it. Please follow the directions provided by Where’s My Refund? . Otherwise if they need more information they will contact you – usually by mail. If they send you a letter about your return, please call me right away.

Q11: Will ordering a transcript help you determine when you’ll get your refund?

No, a tax transcript will not help you determine when you will get your refund. This is among the common myths and misconceptions that are often repeated in social media. The codes listed on tax transcripts do not provide any early insight into when a refund will be issued. The best way to check on your refund is by visiting “Where’s My Refund?” While transcripts include a lot of detailed information regarding actions taken on your account, the codes do not mean the same thing for everyone and they do not necessarily reflect how any of these actions do or do not impact the amount or timing of your refund. IRS transcripts are best and most often used to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation.

Q12: What is happening when Where’s My Refund? shows the status of my refund is: Refund Approved?

This means the IRS has processed your return and your refund has been approved. The IRS is now preparing to send your refund to your bank or directly to you in the mail if you requested a paper check. This status will tell you when your refund is scheduled to be sent to your bank and, if you elected the direct deposit option, a date by which it should be credited to your account. Please wait until it’s been five days from the date they sent the refund to your bank to check with your bank about the status of your refund. This time frame is provided to allow for the variations in how and when banks deposit funds.

Q13: What is happening when Where’s My Refund? shows the status of my tax return is: Refund Sent?

This means the IRS has sent your refund to your financial institution for direct deposit. This status will tell you when your refund was sent to your bank. It may take your financial institution 1 – 5 days to deposit the funds into your account. Please wait until it’s been five days from the date they sent the refund to your bank to check with your bank about the status of your refund. This time frame is provided to allow for the variations in how and when banks deposit funds. If you requested a paper check this means your check has been mailed. It could take several weeks for your check to arrive in the mail.

Q14: Why is my refund different than the amount reflected on the tax return I filed?

If you owe past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain federal nontax debts, such as student loans, all or part of your refund may be used (offset) to pay the past-due amount. Offsets for federal taxes are made by the IRS. All other offsets are made by the Treasury Department’s Bureau of Fiscal Services (BFS). For federal tax offsets, you will receive a notice from the IRS. For all other offsets, you will receive a notice from BFS. To find out if you may have an offset or if you have any questions about it, contact the agency to which you owe the debt. See Tax Topic 203 for more information about refund offsets.

Another reason your refund amount may be different is if the IRS made changes to your tax return that changed your refund amount. In this case you will get a notice in the mail from them explaining the changes. These reasons will be reflected in Where’s My Refund if they apply to your refund.

Q15: What should I do if I know for sure the refund I receive is not from my tax account?

Do not cash a refund check or spend the direct deposit if you know it isn’t your refund. Bring or send it back uncashed to avoid a penalty. If this happens, call me immediately.

Q16: What if I am counting on my refund for something important? Can I expect to receive it on time?

Be careful not to count on getting your refund by a certain date to make major purchases or pay other financial obligations. Many different factors can affect the timing of your refund after they receive it for processing. Even though they issue most refunds in less than 21 days, it’s possible your tax return may require additional review and take longer. Also, if you are anticipating a refund, take into consideration the time it takes for your financial institution to post the refund to your account, or for mail delivery.

Q17: It’s been longer than 21 days since the IRS received my return and I have not gotten my refund. Why?

The IRS works hard to issue refunds as quickly as possible, but some tax returns take longer to process than others for many reasons, including when a return:

includes errors,
is incomplete,
needs further review,
is impacted by identity theft or fraud,
includes Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process.

If they need more information to process your tax return, they will contact you by mail. If the IRS contacts you, that is the time to contact me.

IRS representatives can only research the status of your return if it’s been 21 days or more since you filed electronically, more than six weeks since you mailed your paper return, or if Where’s My Refund? directs you to contact us. Their general telephone number is 1-800-829-1040. However, given their limited resources, their phone lines are going to be extremely busy this year – and there will frequently be extensive wait times. I have special hotlines that as a CPA I have access to. Engaging me can help expedite getting your questions answered.

Q18: My return included a request for a refund of tax withheld on a Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. When can I expect my refund?

If you requested a refund of tax withheld on a Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding by filing a Form 1040NR U.S. Nonresident Alien Income Tax Return, they will need additional time to process the return. Please allow up to 6 months from the original due date of the 1040NR return or the date you actually filed the 1040NR, whichever is later to receive any refund due.

Q19: What information is available on Where’s My Refund?

Information on Where’s My Refund? is for the most recent tax year they have on file for you. You can check on the status of your refund 24 hours after you e-file. If you filed a paper return, please allow 4 weeks before checking on the status.

Q20: Will Where’s My Refund? provide a refund status if I filed an amended return?

No, it does not provide information about amended tax returns. However you can check the status of your Form 1040X (PDF), Amended U.S. Individual Income Tax Return, using the“Where’s My Amended Return?” (WMAR) online tool and the toll-free telephone line 866-464-2050 three weeks after you file your amended return. Where’s My Amended Return? provides personalized, automated, and the most up-to-date information on the status of amended returns in both English and Spanish. You can check the status of a Form 1040X filed for the current year and up to three years prior.

Q21: I requested a direct deposit refund and it is now being mailed as a paper check. Why?

Your refund should only be deposited directly into accounts that are in your own name, your spouse’s name or both, if it’s a joint account. These are some of the reasons a financial institution may reject a direct deposit, resulting in a paper check. Also, no more than three electronic refunds can be directly deposited into a single financial account or pre-paid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund.

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