From the traditional tax returns and the $1,400 coronavirus stimulus checks to the eventual rolling out of the child tax credits, the agency is likely working overtime just to keep its head above water.
But that hasn’t stopped thousands of frustrated Americans from voicing their collective displeasure regarding the delays in getting their hands on refunds from 2020 unemployment benefits. Thanks to President Joe Biden’s $1.9 trillion American Rescue Plan, these refunds are from the waiving of federal tax on up to $10,200 of unemployment benefits, or $20,400 for married couples filing jointly, that were received by taxpayers last year.
The IRS did release nearly three million refunds earlier this month, but the agency has failed to live up to its word when it said that it would disburse the next batch in mid-June.
With only a week to go in the month, the IRS has yet to publicly give a concrete date on when the payments will head out.
“The IRS plans to issue the next set of refunds in mid-June,” the agency says in its release.
“The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns,” it adds.
For those who are still sitting empty-handed, the IRS says the best course of action is to wait patiently—as it is in the process of automatically adjusting tax returns if one qualifies for a refund.
“Because the (approval of the tax refund) occurred after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to their return, which may result in a refund,” the agency notes.
It added that eligible Americans “will receive letters from the IRS, generally within thirty days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment.”
An estimated ten million Americans likely overpaid on their unemployment taxes last year, according to the agency. But since many individuals had already filed their tax returns before the law change, some estimates have the figure as high as thirteen million.
Do be warned, though, that these refunds might never reach some Americans because they could be seized by the government for overdue federal and state taxes, student loans, or child support. Know that third-party creditors also could garnish the money for unpaid private debts, which could include overdue medical bills and credit card debts.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.