How fast does the REFUND APPLIED process happen ?

[dkh]

I'm doing 2021 and 2022 returns for a client.   They have overpayment from 2021 which they want applied to 2022 to cover tax liability but does result in a small refund.    How long do I need to wait after efiling the 2021 return before efiling the 2022 return to assure the 2021 overpayment has been applied.   Client would like to get the 2022 refund yet this year but I'm leery of sending too soon and making a mess of the applied overpayment situation.   With IRS shutdown only days away I'm not sure it can all happen this year.

TIA for your advice.

[ljr]

With 5 days to go to shutdown and the fact that they are filing 2021 a year and a half late I would forgo the applied refund and just have the 2021 sent to them at this point. Handle each year stand alone. I see to many problems the other way. 

[dkh]

Avoiding underpayment of estimates penalties by applying 21 to 22...... otherwise I would agree with let each year stand alone

[IRonMaN]

I would strap on my sneakers, grab my scissors and run with it.  Have it applied and see what happens.  Worst case scenario, at a later date you have to write a letter to the IRS to "correct their error" for not properly applying the overpayment 😁

[BobKamman]

The "credit elect" is for following year estimated tax.  How can you make an estimated-tax payment for a year that is already past the extended deadline?  I think IRS ignores the credit elect in such situations.  The only way to get around it might be to file 2022, then file 2021 a couple weeks later.  But by then, e-filing will be shut down.