Where's My Refund? IRS Still Processing Backlogged Returns. - WSJ Your Money Briefing

Summary4 min read

WSJ Your Money Briefing: "Where's My Refund? IRS Still Processing Backlogged Returns."

Date: July 16, 2020
Host: J.R. Whalen
Guest: Laura Saunders, Wall Street Journal tax reporter

Episode Overview

This episode explores why millions of Americans are experiencing unusually long waits for their tax refunds in 2020, focusing on the IRS backlog caused by the coronavirus pandemic. Guest Laura Saunders breaks down what’s causing the delay, what steps affected taxpayers should take (and avoid), how to track a missing refund, and what risks exist when trying to resolve issues on your own.

Key Discussion Points & Insights

1. How Long Does it Take to Get a Refund?

Typical Timeline: Normally, it's "two or three weeks" for most refunds.
Current Situation: "This year is a whole different thing... the coronavirus pandemic really hit the IRS hard." (Laura Saunders, 01:17)
- IRS office closures led to paper returns "piled up in locked trailers," causing significant processing delays, especially for paper filers.

2. Scale of the Backlog

In mid-June, around 12 million pieces of IRS correspondence were backlogged. By July 4, about 3.6 million of those were paper tax returns still unprocessed.
- "Somebody said maybe they're doing a million a week. I think maybe it's less." (Saunders, 02:24)
The IRS hopes to clear the backlog by "the end of the summer." (Saunders, 02:32)

3. Paper Returns: An Ongoing Issue

About 10% of all taxpayers (roughly 15 million returns) still file via paper:
- "There are certain kinds of forms that don't exist online. But by and large, I think about 90% of taxpayers e-file. But 10% of 155 million is still a lot." (Saunders, 02:54)

4. What Should You Do If Your Refund Is Delayed?

IRS Guidance:
- "The most important thing is that the IRS is asking people not to refile and not to resend checks. If they haven't heard anything, they hope that they're going to clear out the backlog." (Saunders, 03:28)
For Paper Return Filers:
- Keep your proof of mailing and records safe—this is crucial if disputes arise.
Interest Payments:
- If you do receive a late refund, it will include interest "starting April 15." (Saunders, 04:06)
E-filers Facing Delays:
- May signal identity theft or other issues. IRS units that handle these cases are also delayed. Some people have contacted the Taxpayer Advocate’s office or their congressman for help.
  - "It may be that the IRS thinks that somebody stole your tax ID and applied for a refund in your name." (Saunders, 04:15)

5. Risks of Taking Action Unilaterally

Don’t Send a Second Return or Check: You could be "charged twice"—getting the money back is possible but “could be a long, drawn out process.” (Saunders, 05:06)
Only act on IRS guidance: "Do what the IRS says. Don't refile, don't file an amended return and don't send more money if you've already sent money." (05:16)

6. Keeping Records: An Essential Practice

Key to resolving disputes.
- "Write down everything, keep records, get certified mailing stickers, return receipts requested, and keep it in a place where you won't lose it because that's really important in cases like this." (Saunders, 05:34)
- Memorable quote: "The only time [a famous tax lawyer] ever got in trouble was when he didn’t have a certified mail sticker." (Saunders, 05:30)

7. How to Check Your Refund Status

IRS offers:
- “Where’s My Refund?” online tool and a phone number.
- “Just keep checking the Where’s My Refund tool... they will post something on the Where’s My Refund tool.” (Saunders, 05:58)

Notable Quotes & Memorable Moments

On IRS Delays:
"[The IRS] had to close offices and then people sent in tax returns and they kind of had to pile them up in locked trailers..."
— Laura Saunders, 01:26
On Paper Filings:
"About 10% of taxpayers... that would be about 15 million returns come in on paper."
— Laura Saunders, 02:55
On Not Refunding Twice:
“If you pay twice, you will eventually get your money back, but it could be a long, drawn out process.”
— Laura Saunders, 05:08
On Record-Keeping:
"The IRS lives by its records and if you communicate with them at all, write down everything, keep records, get certified mailing stickers, return receipts requested, and keep it in a place where you won't lose it because that's really important..."
— Laura Saunders, 05:34

Timestamps for Key Segments

Why Refunds Are Delayed: 01:17 – 02:36
Size and Nature of Backlog: 02:02 – 02:36
E-filing vs. Paper Returns: 02:52 – 03:18
What to Do If Delayed: 03:28 – 04:56
Avoiding Duplicate Filings: 05:00 – 05:16
Record-Keeping Advice: 05:27 – 05:52
How to Check Refund Status: 05:52 – 06:20

Actionable Takeaways

Don’t refile or resend your return or check—wait for the IRS to process your original submission.
Maintain thorough documentation for anything sent to the IRS (especially paper returns).
Use the IRS “Where’s My Refund?” tool to track your refund’s progress.
E-filers with unusually long waits should consider possible identity issues and may want to contact the Taxpayer Advocate Service if the IRS is unresponsive.

Tone:
Informative, empathetic, and practical—reflecting both the host’s and Laura Saunders’ focus on actionable, realistic steps for taxpayers amid unique IRS challenges.

Loading summary

Transcript23 lines

[00:01]
A
Deal replaces fragmented payroll vendors with one global system. No third parties hire, manage and pay teams in 150 plus countries. Operate like a local everywhere. Visit del.com WSJ.
[00:20]
B
Here's your money briefing for Thursday, July 16th. I'm J.R. whalen for the Wall Street Journal. Now that the July 15th tax filing deadline has passed, the question on a lot of people's minds is, where's my refund? It usually takes the IRS a few weeks to send refunds out to people, but this year many taxpayers have been waiting for months with no word from the irs.
[00:42]
C
Whether you e filed or sent in paper and you haven't heard, don't rescind yet.
[00:48]
B
That's our tax reporter Laura Saunders. She's got some tips for keeping tabs on your tax return and your refund. That's after the break. Millions of taxpayers have received their tax refunds already, but many others are still waiting, even those who filed earlier in the year. So, Laura, how long does it usually take between a taxpayer filing a return and receiving a refund?
[01:17]
C
Well, that varies for all kinds of reasons, but usually it can be two or three weeks. Now this year is a whole different thing for millions of taxpayers because the coronavirus pandemic really hit the IRS hard. You know, they had to close offices and then people sent in tax returns and they kind of had to pile them up in locked trailers and things like that if they were paper tax returns. So it's this year. It's anybody's guess. I think they're doing pretty well with returns submitted recently, but particularly those paper returns that piled up. They're still having to clear out that backlog.
[01:56]
B
Yeah, we've heard about a paperwork backlog at the irs. How behind are they in processing tax returns?
[02:03]
C
Well, I think they're doing reasonably well considering what they were dealing with. In mid June, they had about 12 million pieces of correspondence. A lot of those were tax returns. And as of July 4, they had about 7 million pieces of correspondence. And this is the key thing, about 3.6 million paper tax returns to do. Somebody said maybe they're doing a million a week. I think maybe it's less. I think they're really hoping to get the backlog cleared out by the end of the summer.
[02:36]
B
Well, I guess people are looking around the house with the mail piling up. They have no idea how bad it could be.
[02:41]
C
Yeah, that's exactly right. It was frantic. And, you know, a lot of those returns had checks in them and they haven't been cashed. And things like that there's a lot to say about this and there are
[02:52]
B
still that many people sending in paper returns.
[02:55]
C
Oh, yes, lots of people. You know you're allowed to do it, and lots of people do. I think it's about 10% of taxpayers. That would be about 15 million returns come in on paper, and in a few cases, not many. There are certain kinds of forms that don't exist online. But by and large, I think about 90% of taxpayers e file. But 10% of 155 million is still a lot.
[03:19]
B
Now, let's say somebody filed their tax return earlier in the year, maybe around the traditional filing deadline in April. If they still haven't gotten their refund, what should they do?
[03:29]
C
The most important thing is that the IRS is asking people not to refile and not to resend checks. If they haven't heard anything, they hope that they're going to clear out the backlog. Now, this makes it very important. If you've been sending paper to the irs, you need to get your proof of mailing. You need to keep it in a careful place. The IRS takes that seriously. The courts take that seriously. But the overall message is whether you e filed or sent in paper and you haven't heard, don't resend yet going forward, if you sent in paper, again, don't do anything. But the IRS is trying to clear out this backlog. And so with luck, you'll hear by the end of the summer, and you might get, well, you will get interest on a light refund starting April 15. But the other point is that if you e filed a return back in March or April and you were due a refund and you haven't gotten it, that's more of a cause for concern. It may be that the IRS thinks that somebody stole your tax ID and applied for a refund in your name. Apparently, the unit that deals with this is kind of bogged down or closed up right now because of the virus. So. So some taxpayers in this position, that is, they e filed, they were due a refund, and they haven't heard in weeks or months, have gone to their congressman or gone to the Taxpayer Advocate's office and said, was my ID stolen? Did somebody steal a refund in my name? And then you have to go through the process for that.
[05:01]
B
But if somebody sends in a second return or a second check, do they run the risk of being charged twice?
[05:07]
C
I asked the IRS and I said, they just said, don't do it. And I think what happens is that if you send, if you pay twice, you will eventually get your money back, but it could be a long, drawn out process. So for now, go in and do what the IRS says. Don't refile, don't file an amended return and don't send more money if you've already sent money.
[05:27]
B
How can a taxpayer prove they sent a check in?
[05:30]
C
A famous tax lawyer once said to me the only time he's ever gotten in trouble was when he didn't have a certified mail sticker. The IRS lives by its records and if you communicate with them at all, write down everything, keep records, get certified mailing stickers, return receipts requested, and keep it in a place where you won't lose it because that's really important in cases like this.
[05:52]
B
Hasn't the IRS made it pretty easy for taxpayers to find out the status of their tax return or the refund?
[05:58]
C
That's the other thing they said is that just keep checking the where's my refund tool? There's an online tool and a phone number and eventually your return should show up. You know, even if they do it in two weeks and send it out to you the same day, they will post something on the where's my refund tool. So that's the thing to keep checking and looking at.
[06:21]
B
All right, that's Wall Street Journal tax reporter Laura Saunders. Laura, thanks for coming on the show
[06:25]
C
and thank you so much for having me.
[06:27]
B
And that's your Money briefing. I'm J.R. whalen for the Wall Street Journal.
[06:31]
A
Still running global payroll like a relay race deal replaces fragmented payroll vendors with one global system. Parties hire, manage and pay teams in 150 plus countries with in house local experts and white glove delivery and deal plugs into what you already use. Workday SAP NetSuite operate like a local everywhere visit d e e l.com WSJ that's d e e l.com WSJ.