5 On Your Side

'Fatigued and frustrated.' 17 million people still waiting for tax refunds

Viewers are reaching out to 5 On Your Side, frustrated with the IRS and the long wait times for their tax returns. They say they can't get answers from the IRS.

Posted Updated

By
Keely Arthur
, WRAL 5 On Your Side reporter

Viewers are reaching out to 5 On Your Side, frustrated with the IRS and the long wait times for their tax refunds. They say they can’t get answers from the IRS.

"People are fatigued and frustrated," said Glynnis Engwall.

Engwall said she knows as much as anyone how tax refund delays are hurting people in North Carolina. She’s a local taxpayer advocate, which is part of an IRS watchdog group that helps people with their tax problems, protects taxpayer rights and recommends changes to prevent future problems.

Engwall said as of July 1, there are still about 17 million unprocessed returns nationally.

"Normally, pre-pandemic, we would see refunds issued in the time frame of about four to six weeks, and now generally, we see refunds issued from paper returns upwards of six months," said Engall. "But more likely, 10 months or more is more common for most taxpayers."

Reason for the backlog

The backlog is almost entirely among people who filed paper returns.

"Paper is the IRS’s kryptonite" Engwall said.

If your refund is significantly delayed, the IRS has to pay you interest. Typically, 45 days after the IRS receives your return, 5% interest starts to accrue on what you’re owed until the date your refund is issued.

The Taxpayer Advocate Service has proposed changes to help fix problems with delayed returns.

Ways to get help

In the meantime, if your delayed return is causing you financial hardship, or there's a problem on the IRS’ end, you can reach out to the Taxpayer Advocate for help.

Engwall said the quickest way to do that is to see if you’re eligible through this qualifier tool linked here.
If you are, fill out a Form 911 linked here and fax it in. Most will not qualify for that service, but it’s worth checking with that qualifier tool first.

The help isn’t instant.

"There are so many people who who need help," Engwall said.

"It’s a challenge. I just I want to say to taxpayers that I’m sorry for the trouble."

Looking ahead to next year, Engwall said if you can file electronically and request direct deposit for your refund, that’s the quickest way to get it back.

Some other good tax resources for filers includes Free electronic (e-file) tax filing options and the Paycheck Checkup tool, which can help you figure out if you are withholding too much or too little from your paychecks. This article will help you understand withholdings.

The IRS declined an interview request for 5 On Your Side for the story. The agency, however, said it's in the process of hiring 470 agents to help examine tax filings.

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