I have received several emails from clients asking about their 2019 refunds and 2020 stimulus payments, and I expect many taxpayers have similar questions. So here are the answers.
(1) The offices of the Internal Revenue Service were closed at the end of March due to the pandemic. Mail sent to the IRS was not opened and manual returns were not processed. As a result refunds requested on manual returns were not issued. The Service reopened its offices on April 27 and called back some employees to handle what it called “mission-critical functions” such as opening the piles of mail and processing manual returns. Taxpayers who have not received their 2019 refund yet should get it in a month or two.
(2) In many cases when inquiring about the status of your 2020 stimulus payment or providing Direct Deposit information at the IRS website you will need to enter information from your 2018 tax return. Unless you filed your 2019 return in February or early March the information from your 2019 return is not in the IRS system.
(3) Just because the IRS cashed your check for payment of a balance due sent with your 2019 manually filed return does not mean your 2019 return has been processed. Manual returns with payments are sent to bank lock-boxes. The check is promptly deposited and the return is sent to the IRS for processing.
(4) If you are receiving Social Security benefits that are directly deposited this does not mean your 2020 stimulus payment will automatically be directly deposited to your bank account. This only apllies if you are a “non-filer” – for example your only source of income is Social Security and you do not have to file a federal tax return. The IRS will onlydirectly deposit these payments for those who file federal income tax returns if it has the direct deposit information for a refund requested on the 2019, or more probably 2018, return.
(4) If the IRS does not have your direct deposit information from a previously processed tax return you have until noon on May 13th to provide direct deposit information for your 2020 stimulus payment to the Internal Revenue Service at https://www.irs.gov/coronavirus/get-my-payment.
(5) The date of mailing, or direct deposit, of your 2020 stimulus payment is based on the Adjusted Gross Income (AGI) on your 2019, or more likely 2018, tax return. The greater your AGI the later your payment will be issued.
(6) As of this writing the deadline for filing your 2019 federal and state income tax returns, and paying any balance due, is July 15, 2020. This has not been further extended to September, October or December.
(7) Perhaps most important – there is absolutely nothing your tax preparer can do to expedite the processing of your 2019 tax return or 2020 stimulus payment or the issuance of your 2019 refund or 2020 stimulus payment check.
Now when I receive an email question from a client, I can simply provide a link to this post.
TTFN
