We have received your return and it is being processed

The answer: not much yet!

The prompt means that the IRS has received your return, but due to Covid-19 delays, the IRS is experiencing a considerable backlog, slowing processing times and disbursements.

Typically the IRS processes tax returns and issues refunds within 21 calendar days of receipt. The IRS even stated in January communicating the 21-day time frame.

Add in the pandemic-related tax changes and child tax credit advances, and this tax season is more complicated than ever.

Avoid filing a paper return.

Use electronic filing with direct deposit to receive your tax refund the fastest way.

If your tax refund is delayed, you have options.

You can call the IRS, but you should wait out the delays before putting yourself through this added stress. Due to the backlog, it can take 6-8 weeks to process your tax return.

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
• Your tax return Is affected by identity theft or fraud
• Your tax return includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit
• Your tax return consists of a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process

How to contact the IRS

You may call 800-829-1040 with any Federal tax questions.

Getting through to the IRS over the phone is a challenge. According to the Taxpayer Advocate, only 1 in 9 calls to the IRS are answered. This even with a long wait time.

Not surprisingly, it is best to call right when the IRS opens eastern time or late in the day before closing.

Does the IRS owe you interest on late refunds?

Even with the delays, the IRS owes you interest on your money. The IRS has administrative time (typically 45 days) to issue your refund without paying interest on it.

You have until April 18 to file your taxes for this year. If you don't receive a refund within 45 days after the deadline, then interest may be owed by Uncle Sam.

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You’ve done your taxes and now you can relax while you wait for your refund.  Usually after 24 hours, you can start tracking your money using the “Where’s My Refund?” tool on IRS.gov.  You’ll need your social security number or ITIN, filing status and exact refund amount to check your status.  Once you provide the required information, you’ll most likely get a message saying, “Your return is being processed”.  You may even see the same exact message for days, weeks or months.  But what does it mean? 

The tracker goes through 3 stages

The “Where’s My Refund?” tool allows you to follow your return from the moment it’s received until your refund is issued.  The tracker goes through 3 stages: Return Received, Refund Approved or Refund Sent.  Here’s what each one means:

• Return Received – The IRS has received your return and it’s being processed.
• Refund Approved – They’ve processed your return and your refund has been approved.  It will also provide an actual refund date.
• Refund Sent – Your refund has been sent to your bank for direct deposit or a paper check has been mailed.

The tool is updated daily, usually overnight.  So, there’s no need to check multiple times a day.

When to expect your refund

Even though the IRS expects to issue most refunds within 21 days, some returns take longer to process than others.  Your refund may be delayed if:

• Your return has mistakes or is incomplete
• The IRS suspects identity theft or fraud
• Your Recovery Rebate Credit amount needs correcting
• Your return needs further review
• You claimed the Earned Income Tax Credit or Additional Child Tax Credit using 2019 income
• You filed Form 8379, Injured Spouse Allocation (can take 14 weeks to be processed)

Your return will also take longer to be processed if you file by paper.  To speed things up, the IRS strongly recommends e-filing your return and having your refund direct deposited into your bank account.  If you still need to file, give ezTaxReturn a try.  It’s the fastest and easiest way to do your taxes.

Should you call the IRS?

It’s hard to be patient, especially when you’re counting on your refund for something important.  But you should only call the IRS if it’s been more than 21 days since you e-filed or the “Where’s My Refund?” tool tells you to contact them.

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What does it mean we have received your tax return and it is being processed?

How long does it take after it says we have received your tax return and it is being processed?