Current State of the IRS

How long will it take for the IRS to process my tax return?

This is something I hear almost daily. While the answer is, almost always, it depends, the IRS does have a helpful resource that updates taxpayers on the overall state of processing times.

• The IRS has 1.9 million unprocessed original tax returns. All of these returns require error correction or were paper filed after October 2022. Any return that was electronically filed, paper filed before October 2022, and free of error, has been processed

• There are 454,000 unprocessed amended returns. The IRS warns that amended returns will still take more than 20 weeks to process 

• Mail is back to being opened within normal time frames. If you receive a notice from the IRS, make sure you respond in a timely manner and send it certified, so you can assure it was received

• All 2020 unemployment compensation exclusions have been corrected. If you received a “random” tax refund or credit, it most likely stemmed from the automatic correction of your 2020 tax return

• The IRS is currently processing ITIN applications received in September 2022. If you applied before September, I would recommend contacting the IRS to see if any correspondence was sent. Do not send another W-7 without speaking to the IRS first

This is significant progress, as there were over 10 million unprocessed returns during certain points in 2022 and extended mail delays. Deferring certain reporting requirements has certainly helped their cause, but let’s hope the IRS can make further progress on the backlog before the 2023 filing season begins.