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Tax Return Processing Question(s)

2,172 Views | 16 Replies | Last: 5 mo ago by jonak
Kenneth_2003
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AG
I filed for an extension just prior to the April deadline earlier this year. I always have to file the extension due to a perpetually late arriving K1 every year.

I filed on paper because since Covid the IRS is way behind processing returns so I never can seem to meet the verification requirements to e-file (my previous years AGI never checks out between Tax Cut and IRS records).

So in my certified envelope (for which i have received the stamped/signed receipt confirmation) I included my application for extension and a check for the estimated tax due. That check has STILL not cleared my bank.

I logged onto the IRS site and i see in addition they do not show my 2021 Return as having ever processed. However my 2021 transcript shows the "Payment with return" applied in October of 22.

For 2023 are they just that far behind cashing checks and processing returns?
amg405
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AG
I can't speak to your specific situation, but my accountant has been doing this for 40 years and he's never seen errors and back logs like he's seeing right now with the IRS.

As of now, our 2022 is still pending with gross miscalculations despite concrete evidence backing our submission.

He's literally advising all of his clients that there is basically zero timeline to any parts of the process.
khkman22
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AG
And now the FAFSA is linked directly to the IRS instead of manual input. What could go wrong? Although I'm sure there are not too many people who actually get federal aid that will have situations similar to this affect them.
gigemhilo
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The IRS went home for 2 months during COVID. It broke the system and it still has not recovered.

As far as the OP - We have come the to conclusion in our practice that we will always e-file when possible for reasons like this. It is good, though, that you did certified return/receipt as you can use that as evidence of a timely filing when they try to come back and assess you penalty for late filing/payment.

In your situation, I would contact the IRS and say "What happened to my check?" and see how they want to handle it from here. I know that doesn't sound fun, but it is better to follow their recommended procedure than make up your own.
Definitely Not A Cop
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The IRS has shrunk in size significantly the past 20 years due to aging out/budget cuts over the past 10 years. They need to either grow the IRS significantly, or simplify the tax code.
Todd 02
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Definitely Not A Cop said:

The IRS has shrunk in size significantly the past 20 years due to aging out/budget cuts over the past 10 years. They need to either grow the IRS significantly, or simplify the tax code.
They absolutely do NOT need to do this!
Definitely Not A Cop
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AG
Todd 02 said:

Definitely Not A Cop said:

The IRS has shrunk in size significantly the past 20 years due to aging out/budget cuts over the past 10 years. They need to either grow the IRS significantly, or simplify the tax code.
They absolutely do NOT need to do this!


Obviously I'd like the second option, but the issues the OP is having is a direct result of the IRS shrinking versus the population growing. Something will eventually have to give one way or the other.
Kenneth_2003
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AG
I guess I'm paying the price for "saving money" last October. I wrapped up my full return (post extension) in October and owed $1.

I e-field my application for extension but the fee for paying the $1 owed online was more than it would cost to mail a paper check so I paper filed (certified, return, receipt) my 2022 return. They cashed the $1 check but still haven't processed the full paper return so I was unable pass their internal checks to e-file this time around.

I guess the mail clerk stamped the green return receipt but my check and paper work could still be sitting in an envelope on someone's desk... The check should be good until mid July. Guess I need to start trying to call after the 4th...
one safe place
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Growing the IRS significantly would only mean more money allocated to a terribly inefficient government agency that employs more terribly inefficient federal employees. They are lazy and incompetent and have been the entire time of my career in dealing with them.

Covid resulted in these ****** nozzles being allowed to "work" from home which only made the problem worse.

I favor a change in the system of taxation, but it will never happen. Congress cannot solve major problems and the income tax system is a major problem.
Pinochet
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gigemhilo said:

The IRS went home for 2 months during COVID. It broke the system and it still has not recovered.

As far as the OP - We have come the to conclusion in our practice that we will always e-file when possible for reasons like this. It is good, though, that you did certified return/receipt as you can use that as evidence of a timely filing when they try to come back and assess you penalty for late filing/payment.

In your situation, I would contact the IRS and say "What happened to my check?" and see how they want to handle it from here. I know that doesn't sound fun, but it is better to follow their recommended procedure than make up your own.

I said this in another thread, but I work for a big firm with a team of former IRS executives with insanely useful Rolodexes. Our Treasury/IRS people told me this week that IRS is finally rolling out on a service center by service center basis new modules in their arcane systems that will allow them to actually fix a lot of the problems caused by the screw ups in processing during covid.

We actually have a pretty good practice recalculating interest for clients because the IRS system does it wrong by design. Mind blowing but it has been broken for almost 2 decades and they know it, but won't fix it.
northeastag
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AG
For what it's worth, I discovered a minor error in last year's return (2022). When I asked my accountant if I need to amend, he literally laughed out loud. Said that the IRS is in such disarray that they'd never bother to chase around a small amount from me.
birdman
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The problem with IRS is not that they don't have enough people. The problem is they don't have enough competent people. Or people that try.

Just a bunch of malcontented dumbasses work there.
darkstar84
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To e-file your 2023 1040 you will need to use 0 (zero) as your prior year AGI. The return will be accepted assuming no other problems on the return.
gigemhilo
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AG
Pinochet said:

gigemhilo said:

The IRS went home for 2 months during COVID. It broke the system and it still has not recovered.

As far as the OP - We have come the to conclusion in our practice that we will always e-file when possible for reasons like this. It is good, though, that you did certified return/receipt as you can use that as evidence of a timely filing when they try to come back and assess you penalty for late filing/payment.

In your situation, I would contact the IRS and say "What happened to my check?" and see how they want to handle it from here. I know that doesn't sound fun, but it is better to follow their recommended procedure than make up your own.

I said this in another thread, but I work for a big firm with a team of former IRS executives with insanely useful Rolodexes. Our Treasury/IRS people told me this week that IRS is finally rolling out on a service center by service center basis new modules in their arcane systems that will allow them to actually fix a lot of the problems caused by the screw ups in processing during covid.

We actually have a pretty good practice recalculating interest for clients because the IRS system does it wrong by design. Mind blowing but it has been broken for almost 2 decades and they know it, but won't fix it.
VERY good news. I hate nothing more than dealing with the IRS and getting passed around to 3 different people before someone can help me.

Honestly, I'd rather go strait to TAS most of the time. Those people get things done!
gigemhilo
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AG
darkstar84 said:

To e-file your 2023 1040 you will need to use 0 (zero) as your prior year AGI. The return will be accepted assuming no other problems on the return.
I agree - this might work if they have not processed your 2022
Kenneth_2003
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AG
gigemhilo said:

darkstar84 said:

To e-file your 2023 1040 you will need to use 0 (zero) as your prior year AGI. The return will be accepted assuming no other problems on the return.
I agree - this might work if they have not processed your 2022
That might work when I file in October... Maybe they will have approved my extension and cashed my check by then...
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