BY Kelly Phillips –
Tax season officially kicked off on January 31, 2014, and the Internal Revenue Service has reported that it’s off to a “strong start” having already issued “millions of refunds worth billions of dollars.” Taxpayers and tax preparers alike have been touting how quickly refunds are being processed and, for the most part, it appears to be smooth sailing. Assuming that everything goes as planned, the IRS hopes to issue nine out of ten refunds to taxpayers in less than 21 days after the IRS receives the return.
However, not everyone is finding the refund process to be a piece of cake.
As I reported earlier, a number of taxpayers are having difficulty pinning down the status of their refund. Those experiencing delays are finding that they have a few things in common:
- The “Where’s My Refund?” tool originally showed an anticipated refund date of 2/6/14;
- The “Where’s My Refund?” tool now shows code 1121; and/or
- Taxpayer claimed Earned Income Tax Credit.
It’s worth clarifying that not all taxpayers who are experiencing errors and delays fit that profile. Some taxpayers report only one or two of the three, while others may not have any of those scenarios. However, the majority of complaints being reported to date from taxpayers and tax preparers tend to fit that profile.
I reached out to IRS to find out more. Initially, there wasn’t a whole lot of information but then, it’s still early in the season. Today, the IRS specifically addressed the 1121 code issue, saying simply that they are aware of the situation and advised taxpayers to “continue checking Where’s My Refund for an update. If we need more information to process their return, we will contact them — usually by mail.” The IRS stressed that this does not mean that taxpayers are being automatically audited (as was the rumor).