What's going on at the IRS?

At Sherwood Tax, it is always our goal to provide our clients with a stress free experience. We want you to always feel good about your experience and confident that you’re in good hands. 

Part of this job is making sure that we stay up-to-date and educated on what’s going on at the IRS, so we can communicate any potential issues to our clients as soon as possible. Recently, we’ve become aware of several major problems at the IRS that may be delaying your return or refund: 

  1. As we’ve shared previously, refunds are taking much longer than usual this year due to a large amount of manual tax return processing at the IRS. They are estimating they are about 3.5 months behind reviewing these backlogged returns.  

  2. We have also learned that there are millions of electronically filed returns that are also currently backlogged due to problems with server capacity at the IRS. They are processing returns as soon as space becomes available on their servers. 

  3. Many taxpayers who made a payment with their 2020 tax return received notices this week stating that they had a balance due. For some reason the IRS is not crediting those final payments to the 2020 tax returns. 

Once your tax return is filed, there is nothing we can do to speed processing with the IRS. If you are on an extension and waiting for your return to be filed, it will not be immediately processed, so please be patient as we continue to work through our client list. 

Please remember we are here to support our Sherwood tax clients however we can, but unless we have a power of attorney on file we are not able to discuss your return with the IRS nor are we able to get any updates on refunds. 

If you have received a notice, your best bet is to call the number on the notice and make sure they apply any payments you made correctly. You can also get the status of your refund by visiting www.irs.gov and clicking on the “Where’s My Refund” tracking tool. 

If you are struggling with any of these steps or have any questions, please contact us via email and we will answer your question in the order it was received (usually within 72 business hours).

Breakaway Advising