How long does it take for the IRS to review your tax return?

Asked by: Michele Cummerata  |  Last update: September 25, 2022
Score: 4.9/5 (36 votes)

The IRS issues more than 9 out of 10 refunds in less than 21 days. However, it's possible your tax return may require additional review and take longer.

How long will my refund be under review?

How long the review process takes depends on what information the IRS needs to verify. If you don't hear anything within 45 days from the date of the initial notice, however, you can follow up to see what happened to your refund.

What does it mean when the IRS is reviewing your refund?

The review means that your return is pending because IRS is verifying information on your tax return. They may contact you before processing your return. Please see the link below since you are relying on your refund. The Taxpayer Advocate Service may be able to help once you have tried getting your refund.

Does it take 60 days to review tax return?

You will get an initial IRS notice which will state the additional delay (E.g a letter 2645C) and extra time for the IRS to review and respond (normally 60 days). If they need something from you they will send a follow-up letter (e.g. CP05 or or 4464C) that will likely provide more details and actions to take.

Why is my tax review taking so long?

The agency is still trying to catch up on a backlog because of the pandemic. “It's taking us longer than normal to process mailed correspondence and more than 21 days to issue refunds for certain mailed and e-filed 2020 tax returns that require review,” the agency said.

How long does IRS have to audit your tax returns?

15 related questions found

Will the IRS contact me if there is a problem with my refund?

Remember: The IRS will never call you if it has issues with your return – that's usually a scam – but will send you a letter instead. If you do receive a letter from the IRS about your return, take action right away.

Does IRS review every tax return?

The IRS does check each and every tax return that is filed. If there are any discrepancies, you will be notified through the mail.

Why is my refund still being processed?

The following are some of the reasons why tax returns take longer than others to process: Your tax return includes errors, such as incorrect Recovery Rebate Credit. Your tax return Is incomplete. Your tax return needs further review in general.

Is IRS behind on refunds?

The report expresses concern about continuing delays in the processing of paper-filed tax returns and the consequent impact on taxpayer refunds. At the end of May, the agency had a backlog of 21.3 million unprocessed paper tax returns, an increase of 1.3 million over the same time last year.

How long should it say your tax return is still being processed?

Individual taxpayers can call the IRS at 800-829-1040 if: It's been 21 days or more since you e-filed your return. It's been six weeks since you mailed a paper tax return.

Why is it taking so long for the IRS to process my return?

Things that can delay a refund:

The return has a claim filed for an earned income tax credit, additional child tax credit, or includes a Form 8379, Injured Spouse AllocationPDF. The time it takes a taxpayer's bank or credit union to post the refund to the taxpayer's account.

What raises red flags with the IRS?

While the chances of an audit are slim, there are several reasons why your return may get flagged, triggering an IRS notice, tax experts say. Red flags may include excessive write-offs compared with income, unreported earnings, refundable tax credits and more.

What will trigger an IRS audit?

Top 10 IRS Audit Triggers
  • Make a lot of money. ...
  • Run a cash-heavy business. ...
  • File a return with math errors. ...
  • File a schedule C. ...
  • Take the home office deduction. ...
  • Lose money consistently. ...
  • Don't file or file incomplete returns. ...
  • Have a big change in income or expenses.

How will I know if I am being audited?

In most cases, a Notice of Audit and Examination Scheduled will be issued. This notice is to inform you that you are being audited by the IRS, and will contain details about the particular items on your return that need review. It will also mention the records you are required to produce for review.

What is the longest a tax refund can take?

If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, even faster when you choose direct deposit.

Why has my refund been accepted but not approved?

First, they look for things like back taxes and unpaid child support. If they find any debts, they'll offset (reduce) your refund to cover the outstanding amount. Once they are satisfied that you have no outstanding debts, they will approve and then issue your refund.

What are red flags to get audited?

17 Red Flags for IRS Auditors
  • Making a Lot of Money. ...
  • Failing to Report All Taxable Income. ...
  • Taking Higher-than-Average Deductions. ...
  • Running a Small Business. ...
  • Taking Large Charitable Deductions. ...
  • Claiming Rental Losses. ...
  • Taking an Alimony Deduction. ...
  • Writing Off a Loss for a Hobby.

Who gets audited the most by the IRS?

Audit trends vary by taxpayer income. In recent years, IRS audited taxpayers with incomes below $25,000 and those with incomes of $500,000 or more at higher-than-average rates. But, audit rates have dropped for all income levels—with audit rates decreasing the most for taxpayers with incomes of $200,000 or more.

Can you be audited after your return is accepted?

Key Takeaways. Your tax returns can be audited even after you've been issued a refund. Only a small percentage of U.S. taxpayers' returns are audited each year. The IRS can audit returns for up to three prior tax years and, in some cases, go back even further.

How long do IRS audits take?

How long does an IRS audit take to complete? Now for the answer to the all too familiar question every tax attorney gets: “How long does a tax audit take?” The IRS audit period itself should generally take no more than five to six months. Sometimes with proper preparation, they can be resolved faster.

What year is the IRS auditing now?

This is most easily observed by looking at Tax Year 2019 which is presented in the FY 2021 Data Book with audit results as of September 30, 2021. Tax returns for 2019 are filed in 2020 and may be filed on extension as late as October 15, 2020.

How long after an audit will I get my refund?

The estimated time frame for receiving a refund after sending in audit documents is approximately 4-8 Weeks.

What does it mean when the IRS says they have received your tax return and it is being processed?

This means the IRS has your tax return and is processing it. Your personalized refund date will be available as soon as the IRS finishes processing your return and confirms that your refund has been approved. Most refunds are issued in less than 21 days.

Why is my refund still being processed after 2 months?

Some of the reasons are: you claimed the Earned Income Tax Credit and/or an Additional Child Tax Credit (if you claim either of these credits, the PATH Act requires processing to be delayed), you filed Form 8379 (Injured Spouse Allocation), you have a refund offset, the IRS found errors, inconsistencies, or missing ...