UNITED STATES—America, this has been a tax season unlike any other. I really thought last year’s tax season was bad, I mean we were in the middle of a pandemic people, however, this year is proving to be far worse and no one can explain why. Refunds are being delayed and by significant time frames people. I mean the tax season started late for the IRS to process refunds. Normally it would start as soon as the New Year kicks off, but for 2021, it did not start until February 12.
Yeah, you can believe that everyone who could send a return in to get a refund did so as soon as that window opened. The problem is the IRS has been so behind on things, specifically in relation to tax returns from the 2019 tax year. Yes, I understand that e-filing—filing your taxes online— is the new mode and its easier and faster, but not everyone is computer savvy and some people like to have a paper trail. The IRS is processing 2019 returns in addition, to dealing with a limited staff and dealing with updated tax laws.
For example, many people received extra money from the federal government for unemployment in 2020 as a result of being laid off or losing their jobs because of the pandemic. Yeah, to the tune of $600 extra weekly for several months; it was a lot of money for Americans, and I could have sworn I heard it countlessly that the U.S. government explained that the extra funds being sent out would not be taxable, however, that was not the case and it confused plenty of people.
How did this cause issues in the tax season? It led to people filing their tax returns before new legislation was passed by Congress that determined the first $10,200 in unemployment compensation was NOT taxable. Yeah, that means people who filed their taxes before that legislation was enacted paid taxes on money that they should NOT have paid taxes on. As a result, it led to people finding out far later in the tax season that the IRS would be issuing tax refunds to Americans who paid taxes on unemployment funds that they were not supposed to.
Hence the problem now, there are people who are still waiting for tax refunds that were filed back in February, March and April. Explain to me how people who filed their returns in February or March still have NOT received a refund. I understand if there were issues with your refund, but what about if everything is good with your return. There are no issues, but you’re still waiting for your refund from the government because they are delayed and there is delays in completing tax returns that were filed because of a manual processing needs to be completed. You check the system or the IRS portal and each time you check you see the same thing “Your tax return is still being processed.”
As a tax payer that is frustrating people, it is disheartening because when you try to call the IRS via phone, it is so busy you CANNOT get thru. I’ve tried daily, all different times during the day and get the same response. Your call cannot be taken at the moment, please try again later and the call ends. I get the Internal Revenue Service is backlogged, overworked and dealing with a situation unlike anything ever witnessed in this country, but answers have to be delivered for the American people.
You cannot leave them out in the cold waiting, wondering and just left with no answer as to what is going on. It simply is not fair and a better system has to be put into place to ensure questions that the American people have are being answered. I mean how can someone who submitted their tax return the day taxes were due can get their refund in a week, but someone who submitted their return 6 weeks before the tax filing deadline is still waiting on their return and hasn’t received a piece of paper in the mail or anything in the IRS portal noting what is going on.
There are Americans who are waiting for those tax refunds that is money they need, money they are relying and they are waiting in limbo. Some sort of answers or updating on the rollout of when refunds are going out, how they are going out and just a better system that provides clarity for all.