If you are a regular taxpayer, you must know the various IRS codes and what they indicate. Although the IRS makes sure to refund taxes within 21 days, sometimes your payment faces an unusual delay, and you wonder why are my taxes still processing?
The reasons for your tax processing taking longer than usual vary. It can be a typing error in your informational form or an unpaid scholarship.
To inform you about your payment status, the IRS uses different referral codes. Topic 152 appears when your tax refund is delayed and tax 151 when your funds are held for an audit.
Reasons Why My Tax Processing Is Taking Longer Than Usual
Most of the time, the taxpayers get their refund deposited directly to their bank account or as a check. The refunding process happens within 21 days, and if your payment hasn’t arrived yet, there may be some issue.
Often the issues are typical and can be easily eradicated, but in some cases, your refund is maybe held for an audit and investigated appropriately. Some of the most prominent reasons for delayed tax processing are:
1. Filling More Than One Status
If you wonder why my taxes are still processing, it is because you filled various statuses in the same form. For example, you will see multiple options on the refunding paper, such as Married, Divorced, or Head of the house? You don’t have to fill all these.
Just go with any of these according to your current status and fill in your other information. Your status determines your filling information, such as your tax amount and standard deduction. Filling more than one can be confusing for the IRS, and they can hold your refund until the confusion is addressed.
2. Poor Typing
Another reason for the late refund is the poor typos. While filling out the form, make sure you have all the necessary information and fill it in correctly. If you enter a wrong name, birth date, or Social Security Number, there are chances the IRS will take notice of it, and you will not get your tax refund on time.
Using someone else’s SSN or information to get a refund is wrong, and it can get you charged. Don’t fill out the form in a hurry, or you will make typing errors. Poor handwriting is also a primary reason behind your refund delay. These reasons may seem temporary to you, but the IRS is a very responsible department, and they notice all these things while checking.
3. Your Income Doesn’t Match Your IRS Records
W-2s and 1099s are the forms that show your real Income and assets. The officials also send a copy to the IRS when you get these forms. If your provided information doesn’t match with the IRS records, the IRS withholds your payment until you submit a clear stance on it, or the IRS sends it back for resolution.
If your tax is higher than what is written in the information, the IRS will deduct it and send an amount less than you anticipated. That’s why make sure you are not hiding any income source while filling in information.
4. Bank Information Doesn’t Match
People usually connect their bank account with the refunding system to get a direct deposit in their account. But sometimes, the deposit account data doesn’t match the filing status while returning.
In this case, you may face a delay in your refunds. So, if you are using this direct deposit option, try to give an authentic account to save yourself from this situation.
5. Mailed Your Refund
Nowadays, everything is online. The IRS also uses an online or e-filing status refund system to clear payments quicker. However, if you have sent your refund through the mail, the IRS will take time to give your refund. And after that, the errors present in the paper form can cause more delay. So, the best way to ensure a safe and quick refund is to fill your status online and get your refund within 21 days, either directly deposited or in form of a check.
How To Check The Status Of My Tax Refund?
The best and quickest way to check your tax refund status is through the IRS “Where’s My Fund” tool. This tool shows you new information and gets updated every 24 hours. If you don’t know how to use the tool, follow the given steps:
● Go to the official website of the IRS or download the IRS2GO app on your phone to get access to this tool.
● Enter the required information such as your personal information, Social Security Number, filing status, and the total amount of tax refund.
● Wait for a few seconds, and you will be directed towards a page showing your tax refund status and the expected day or time of the repayment.
However, if your taxes are still processing and getting delayed, you can contact the IRS through their official number.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.