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Why Does the IRS Sometimes Delay Refunds?

Updated: 10/29/2009
Article ID: 2983

In 2007, the IRS will again review certain individual income tax returns before issuing refunds, as part of its revenue protection efforts.

Select a link to go directly to a section or read through the article for more on this issue:

Returns with questionable refunds

The IRS will take a closer look at an estimated 323,000 returns (including approximately 272,000 electronically filed returns) it considers to have "questionable" refunds. If the refund is delayed beyond two weeks, the IRS will mail a notice advising the taxpayer that his/her refund is being delayed for further review, and that he/she will either receive the refund or hear from the IRS again within three weeks. Additional notices will be mailed as necessary.

Also: if the taxpayer requested direct deposit, that request will be honored once the IRS determines the refund is valid.

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Returns with Earned Income Tax Credit (EITC) refunds

As in previous years, the IRS will examine returns to ensure that the earned income tax credit was reported properly. The IRS plans to look at about 400,000 EITC returns prior to issuing EITC refunds to those taxpayers; an estimated 320,000 of these will be e-filed returns. (Unexpected tax filing season issues may result in changes to the number and type of returns reviewed.)

If the IRS identifies an issue with a return, the portion of the refund attributable to the EITC claim will be frozen until the issue is resolved. The IRS will notify taxpayers of the frozen refunds within two weeks of accepting electronically filed returns, and within four weeks for returns filed on paper.

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Contacting the IRS regarding a delayed refund

Intuit doesn't have information on which returns the IRS reviews, or why. So if you have a question about a delay in receiving your refund, contact the IRS directly at 1-800-829-1040.

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