The IRS maintains a webpage showing operational status during the pandemic. Additionally, the IRS periodically sends out “Hot Issue” summaries. One of the items asked in the “Hot Issue” questions was on amended returns:
1040X not processed
Issue: When will 1040X be processed?
Response: As a result of the backlog in the number of amended returns in inventory created by Coronavirus closures, the processing time has been extended to 20 weeks. We are sorry for any inconvenience.
That’s equivalent to about five months. Unfortunately, that’s very optimistic. I have seen an amended return processed that fast this year (back in March), but the return involved no change in dollar amounts (just changing the capital loss carryforward for a year). The last three amended returns I prepared for clients took nine months, 15 months, and 12 months to be processed.
Now, I am not blaming the IRS here for the delays. As long as most government employees aren’t working in their offices, these delays will continue. However, I do blame the IRS for misstating what taxpayers should expect from the IRS. Bluntly, taxpayers should expect that it will take on average one year from the date they file their amended return for it to be processed. I’m not going to quote five months when that simply isn’t happening.
Tags: 2021.Tax.Season