2021 Fed Tax Refund delays?

[kristinpalmiotto]

2021 Federal 1040 Return filed late/accepted by IRS on 01/23/23.  Refund still not received 2 months later.  IRS "Where's my Refund" page continues to show status as "Return Received."     Everything I'm reading says refund should be received in 21 days.  Anyone experiencing the same thing?  Suggestion on next steps?

Thanks in advance.  

[rbynaker]

Sometimes you have to call to get it kicked back onto the conveyor belt.  If the client waited that long to file this is a whole lot of not-my-problem.  At least until after 4/15 or 4/18.  Most of the time if the client calls the IRS they can get it un-stuck (or find out that they were supposed to open that letter they got from the IRS last month asking for ID verification . . .)

[BobKamman]

Exactly where is "everything" you have been reading, and doesn't that take a lot of time away from productive work?   This is what I'm reading:

"As of March 11, 2023, we had 2.04 million unprocessed individual returns. These include tax year 2022 returns, 2021 returns that need review or correction and late filed prior year returns. Of these, 1.64 million returns require error correction or other special handling, and 408,000 are paper returns waiting to be reviewed and processed. This work does not typically require us to correspond with taxpayers, but it does require special handling by an IRS employee, so in these instances it is taking the IRS more than 21 days to issue any related refund."

https://www.irs.gov/newsroom/irs-operations-status-of-mission-critical-functions

My experience is that people who get around to filing returns the year after they are due, are more likely to need error correction or special handling.  Just as an example, have they filed their 2020 return?  Maybe IRS is waiting to check on whether it has a balance due.  

Or it could just be a case of identity thieves having a lot more time to steal that SSN.  

[qbteachmt]

I seem to recall that 2021 was a huge delay year, in general, even if filed timely, due to all the double-check and cross-confirmation for various credits (refundable and not). The IRS will pay a refund with (approximately) 7% interest under their regulations, so why worry about it?

[BobKamman]

The 7% rate didn't start until 1/1/23.  For last year, it averages 5%.  I always have to look it up, but I think IRS by statute (not regulation) doesn't have to pay any interest if the refund is authorized within 45 days; otherwise, it goes back to the due date of the return, even if filed late.  

Interest Categories 4th Quarter(Oct-Dec) 3rd Quarter(Jul–Sep) 2nd Quarter(Apr–Jun) 1st Quarter(Jan–Mar)

Non-Corporate overpayment (for example, individual)

6%

5%

4%​

3%​