IRS Refund Checks are perhaps one of the most sought-after checks by taxpayers. Regardless of the fact that most the refunds are processed and received within a period of 21 days, there are some delays that are caused on the part of the IRS.
There are lots of questions and ambiguities pertaining to the IRS Refund Checks, and the processing associated with the IRS Refund Checks. Here’s a list of all the questions (and answers) related to IRS Refund Checks, and the processing times.
Where does the IRS Checks get mailed from?
This is perhaps the most searched question, because of the unavoidable delays associated with the IRS Refund Checks. Factually, it can be seen that this option is most relevant to people that opt for receiving their IRS Checks via email.
IRS Checks are emailed from the Department of Treasury. This is because they are the ones handling the incoming and outgoing finances from different departments. They have offices in various different locations, and hence, checks are dispatched based on the different locations they are a part of. Therefore, for every city or town, there can be a different office from where the check is emailed.
However, it is also important to understand that there are several different checks that are created, and dispatched by a single IRS office unit, and therefore, delays are quite possible when it comes to receiving the refund checks, because of several different reasons.
The reasons as to why there are delays in refund checks that are emailed from the IRS are as follows:
- Weather conditions: There are often delays that are caused because of unprecedented weather conditions. For example, severe rain, or snow storms can hamper the logistic movement of different courier, and this might eventually result in delays in checks being received.
- Delays in check creation: There might be an inherent delay in refund processing because of some information missing in the return files, or something else. This is normal, and hence this can eventually result in some unprecedented delays.
- Untraceable address: This often tends to be one of the major reasons behind delays in check receipts. There might be instances where the address of the recipient is untraceable, and does not have proper results.
- Unavailable recipient: In some circumstances, the check does not get delivered because of the unavailability of the recipient. In that case, the check gets sent back to the IRS, after which it is then dispatched again. Hence, it results in unprecedented time delays.
What impacts the IRS Refund Duration?
Despite the fact that IRS Check receipts are often impacted by issues related to logistics, there are several other factors that often impact the refund durations on part of the IRS. Factors that influence the timeliness of refunds on the part of the IRS are as follows:
- Timeliness of the tax filing: The earlier the tax returns are filed, the greater is the likelihood of quicker turnaround times.
- Credit claims: In the case where taxpayers claim for credits, especially EITC (Earned Income Tax Credit) and CTC (Child Tax Credit), there are definitive delays in the refund processing time.
- Filing method: Generally speaking, returns that are filed electronically are processed faster as compared to returns that are filed un-electronically.
- Debt Situation: In the case where the taxpayer has taken on a debt from the federal government, there might be unprecedented delays in the debt situation.
What other options do taxpayers have for receiving refunds?
There is no doubt to the fact that opting for the check service from the perspective of the taxpayer is not entirely risk-free. This is because of the inherent risk of check delays, as well as the risk of the check being lost altogether.
However, depending on the preference of the taxpayer, there are three options using which the taxpayers can choose to receive their refunds. These options are as follows:
- Direct Bank Deposit: This is the most popular choice that is selected by the taxpayers. Using this option, funds are directly deposited into the account specified by the taxpayer. However, the only condition in this option is the fact that the account should belong to the taxpayer only. The amount can be split across three different accounts. The spouse’s account can also be used to receive the refund directly in the account.
- Refund Check from IRS: This involves receiving a check from the IRS, in favor of the taxpayer. The check is then deposited at the bank, after which funds are received in the account.
- U.S. Savings Bond: This method is relatively less popular as compared to the other two methods. Taxpayers have the option to purchase U.S. Savings Bond, as well as the IRS Tax Refund that is received.
How often are tax refunds processed by the IRS?
Tax refunds are normally processed by the IRS two times a week. On the first day of processing, IRS supposedly processes refunds that it makes through direct deposits. On the other hand, on the second day, IRS sends out refund checks to taxpayers who do not opt for direct deposit.
It must also be noted that tax refunds are not immediately processed once they are filed. It does take a duration of around 6 weeks (in case of normal filing), and 21 days, in case of electronic filing.
How can refund status be monitored?
The refund status of individual taxpayers can be monitored via “Where’s my Refund?” This tool also called “Refund Hotline”, is available on the IRS website. It must also be noted that Where’s my Refund tool does not get perpetually updated, and it is only updated on a periodic basis, mostly twice a week. Once the return has been filed electronically, the portal takes around 72 hours to update, after which the refund status can be periodically monitored.
Things to avoid when filing for taxes
IRS red flags are important aspects that should ideally be considered in order to ensure that there are no lags or unprecedented delays in filing for taxes. Factually, it can be seen that there are several different factors that should be considered, primarily on the grounds of filing aspects, which can avoid these red flags. This also helps in expediting the filing process, the refund process, and more importantly, avoiding the IRS Audit.
- Reporting all taxable income: It is a huge mistake to hide income from the IRS taxpayers. It is important to ensure that all taxable income is fully disclosed in the financial statements, since the IRS does eventually find out if there is information missing from the returns.
- Avoiding excessive deductions, and claims: Filing for excessive deductions and tax credits often result in a red flag on part of the IRS. For example, filing for Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), does cause a delay in the process.
- Large charitable donations: IRS has a clear cut idea regarding the average donations that are made by an individual in a particular income band. It is a mistake to hide this information, because it can result in an audit, or a delayed processing.