Where is My Refund?
How the IRS Works?
Now that your return has been filed, the next question you have is “When will I get my refund?”. Here is a little behind the scenes tour of the IRS process that may help explain why some refunds are deposited within five days and others take up to 15 months.
STEP 1 - File your return with the IRS and your state tax agency (if necessary). This can be done via a paper return or via an eFile system with your professional tax preparer. The second option is much quicker as it avoids the 3 month backlog of unopened mail at the IRS.
STEP 2 - The IRS runs a quick check to determine whether to accept the return for processing. The IRS computers run algorithms confirm that there are no red flags about the basic legitimacy of the return like confirming the Social Security numbers and names match. This process can take anywhere from a few minutes to up to 48 hours in peak tax season. Acceptance doesn’t mean your refund is approved, just that it has passed the first hurdle.
STEP 3 - Once the IRS accepts a return, its computers check it for math errors. When errors are detected, many can be fixed quickly by the IRS without contacting the taxpayer. In such cases, the returns and refunds get adjusted automatically, all without a human touch. The IRS sends taxpayers a notice of the adjustment, and those who disagree have 60 days to respond.
STEP 4 - The IRS checks the return for clerical accuracy by, for example, comparing the numbers you entered with the data from banks and employers. If there’s a mismatch, the return is flagged and that can delay the refund.
STEP 5 - The IRS then reviews the return for suspected identity theft or fraud. The IRS deliberately keeps the specifics of these checks private.
STEP 6 - If issues can not be resolved internally, the IRS will reach out to taxpayers by letter to ask for additional information, such as a schedule for itemized deductions. Since this process is done via the mail, resolution can take more than 180 days and severely delay your refund.
STEP 7 - Once the refund amount has been determined to be legitimate, the IRS computers will check whether the taxpayer owes money to the federal government or someone else for federal tax, student loan debt or child support. An y amounts owed will be deducted from your refund.
STEP 8 - Finally, the refund is issued. By electing direct deposit of your refund to a US bank account in your own name you avoid the two to three week refund delay created by requesting a paper refund check.
You can check the status of your refund online at IRS.gov/refunds or with the IRS2Go app 24 hours after e-filing your return or four weeks after surface-mailing it. You’ll need to know your Social Security number or taxpayer identification number, your filing status and the exact amount of your expected refund.
If your refund is delayed, take comfort in the silver lining: The IRS will pay interest on late refunds in most cases, typically after 45 days, using a complex formula, including the current interest rate of 7%.