Clients return / small refund is still in limbo. Still being processed. The return was electronically filed and accepted on March 24th, after the software was corrected for the unemployment compensation exclusion. The client did have a $8,000 unemployment exclusion which was properly completed on the return. This is why I believe the return is in limbo. No credits on return, married filing joint standard deduction. Thank you for any information or update.
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Ive seen other preparers mention clients are getting adjusted refunds for the UI even AFTER they made already made the adjustment on the return...IRS has a huge mess theyre dealing with over there.
I dont think their computers can tell automatically which returns had been adjusted or not, between that and the Community Property rules for UI, they are just totally in the weeds with getting this corrected for people.
Still have two 2019 refunds clients are waiting on. Have well over one hundred 2020 refunds waiting on. Have errors on unemployment, APTC, etc. that IRS was to handle and haven't. Even my own state refund hasn't happened and it's been 5 months. Had one client contact the Taxpayer Advocate Service for their 2019 refund. Was told they have a six-month backlog before they can even look at their file.
I'm to the point of telling clients it should arrive sometime before the year 2030.
@sjrcpa @dascpa @Just-Lisa-Now- One of the returns I prepared that was in limbo, I believe due to the CTC, was finally processed a couple of weeks ago... A colleague who uses Drake said that some of his "in limbo returns" are now being processed but others are not... So maybe the Log Jam is starting to break up... Let's hope so...
A family member who paper-filed a return received at Ogden on March 24 got his refund last week. But I am hearing of others who filed by March 14 and are still waiting. You know that IRS shut down for months last year and is still not fully staffed, and I know it, but many of our clients think that life should be back to normal and returns should be processed just as fast as they were in the Before Times. The attention span of the average American is about the same as the gestation period of a rabbit.