Refunds from TY 2019 still not received

[TAG]

I have 3 clients that still have not received their 2019 Federal tax return refunds.  the IRS "where's my refund" site says 

"We have received your tax return and it is being processed."  Does anyone have a solution for this problem?

 

Thank you,

Terry

[Possi]

Yup. Not surprised. They are so backed up it's crazy.

Your clients will eventually get the refunds with interest... interest that will be taxable income next year, of course. 

If not for the huge back log, I would suggest calling the Practitioner Priority Line, but this is happening everywhere to everyone. I wouldn't waste my time. 

[Catherine]

No, there's no solution, in general.  They are still hand-processing millions of these returns with refunds.

About the only thing you can do is ask the clients if they got ANY letters from the IRS about them.  Some  people won't open IRS letters, or don't understand them.  I had one client where the service wanted him to call to verify identity, and he never read the letter through.  Brought it to me saying "I don't know what they want" and once he called (and got through - another story) he was able to verify and they released the refund.  That still took another six weeks.

[Terry D EA]

I have one that I plan on calling the IRS PPL about. Don't know if I'll get anywhere but it's worth a try. The client called the IRS and she claims they told her she could claim the refund on the 2020 form 1040. Um, NOT!

Me- Are you sure they weren't referring to the recovery rebate credit?

Client -  Nope specifically said they could claim the missing 2019 refund.

Me - Well sorry, but there is no place on the form for such a thing. 

So, we'll see where this goes.

[JohnH]

I still have one paper-filed 2019 return that I prepared last Feb (2020) and the refund still hasn't shown up.

[Pacun]

Sometimes I just think like a tax payer. I hear things from my stylist like "the IRS has a lot trailers full with unopened mail" and I don't bother to find out what's happening to the individual return. In my case, the IRS website had nothing listed for 2019 and I kept telling the client that the IRS had not opened her package and I pretended to be savvy by saying that the IRS had a bunch trailers with mail and that her package was in there since there was nothing on the website. It is easy to send the client away when you have not prepared their 2019 return which is the case with this client.

One day, reluctantly, I decided to call the practitioners hot line and they told me that the return was on file but they were taking a look at it.  Since it has been so long, the representative said that he was going to open an inquiry and that will force the person or group holding the refund to work on it. The inquiry gives them 30 days to look at the return. 

For the 2020, the lady said that the client needed to wait 45 days before anything could be done. I am about to call about 2020 since the 45 days have passed.  I have read that if you used 2019 income for EIC and CTC on the 2020, they are delayed because someone has to look at it. But again, something can be done after the 45 days.

After that call with the IRS, the client stopped calling me every week. 

 

[Catherine]

10 hours ago, JohnH said:

I still have one paper-filed 2019 return that I prepared last Feb (2020) and the refund still hasn't shown up.

It's at the bottom of the first bag in the first trailer loaded?

[JohnH]

4 hours ago, Catherine said:

It's at the bottom of the first bag in the first trailer loaded?

That sounds about right.  In this case it’s no big deal. It’s my grandson’s return. Refund is about $400.
 

Along with his Christmas present, I gave him the $400 in December and told him he can pay me back when the refund arrives.  So technically it’s my refund being held up.

 

Plus, whenever it arrives I’ll probably tell him to keep it (as long as he puts it in savings).