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IRS Tax Refund Delays: Many Still Waiting after IRS Snafu

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By Admin on May 24, 2011 9:49 AM

Are you neurotically checking your IRS refund status? Thanks to a snafu by the agency, many Americans are experiencing a tax refund delay.

The reason for the sudden delay is that the IRS has gotten in over its head in processing financial transactions. Several years ago, the IRS began giving out no-interest loans to first-time homebuyers. Essentially, the agency is now being forced to collect loan payments and issue refunds.

The mix of financial transactions the IRS now has to process is what is causing the delay to an unspecified number of taxpayers, reports MSNBC.

Taxpayers across the nation have been experiencing the delays. Some were given IRS refund status dates in March, and still have not received their refunds yet, according to MSNBC.

Usually, IRS refunds requested as direct deposits for taxpayers that e-file only take 7 to 10 days. Those who e-file and request paper checks usually receive the checks in 3 weeks. Those who file a paper return and want a paper check will receive their checks usually within 6 weeks.

If you are curious about the status of your refund, the IRS does offer a website where you can check your refund status. Alternatively, taxpayers can call the IRS Refund Hotline at 1-800-829-1954. There's also a smartphone app for iPhone and Android users to check their status, called IRS2Go.

However, be aware that many of the taxpayers that have been affected by the delays were given dates that their refund would be issued, but the dates have rolled by without any refunds given. Furthermore, sometimes the IRS refund status will be in "error" meaning that you are likely being affected by the tax refund delay.

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