{"id":18357,"date":"2024-10-16T08:57:00","date_gmt":"2024-10-16T08:57:00","guid":{"rendered":"https:\/\/synder.com\/blog\/?p=18357"},"modified":"2024-10-17T12:32:45","modified_gmt":"2024-10-17T12:32:45","slug":"how-long-can-the-irs-hold-your-refund-for-review","status":"publish","type":"post","link":"https:\/\/synder.com\/blog\/how-long-can-the-irs-hold-your-refund-for-review\/","title":{"rendered":"How Long Can the IRS Hold Your Refund for Review?"},"content":{"rendered":"\n

Once the tax filing season<\/a> is over, we’re eagerly awaiting the due return of overpaid taxes. However, we may occasionally find ourselves embroiled in the complexity of IRS refund reviews.<\/p>\n\n\n\n

Herein lies the pressing question: “How long can the IRS hold your refund for review?” The specter of unexpected delays, rigorous reviews, and adjusted refund amounts can be daunting. Yet, by understanding the process, we can alleviate some of the stress.<\/p>\n\n\n\n

The underlying causes of refund delays<\/h2>\n\n\n\n

When the IRS<\/a> withholds or takes your refund, it’s more than a mere financial inconvenience or issues of the amount of tax you owe. It’s an indication of potential discrepancies in your tax profile in general. Here are the common reasons why the IRS might be holding your refund:<\/p>\n\n\n

\n
\"Why<\/figure>\n<\/div>\n\n\n

1. Questions about your tax return accuracy<\/strong><\/h3>\n\n\n\n

One common reason is when the IRS has questions about the accuracy of your previous year\u2019s return. This might happen if they suspect errors in tax filing or are conducting an audit. In such cases, if the IRS changes your refund and you disagree, you generally have 60 days to dispute their decision.<\/p>\n\n\n\n

Got it! But what should I do if I notice a mistake myself?<\/strong><\/h4>\n\n\n\n

If you’ve discovered an error on your tax return or realized that you overlooked a beneficial deduction or credit, don’t fret. There’s a solution in the form of an amended return. The IRS provides a straightforward process for such corrections, allowing taxpayers to file an amended return using Form 1040-X. <\/p>\n\n\n\n

2. Owing back taxes<\/strong><\/h3>\n\n\n\n

If you owe back taxes, the IRS will typically apply your refund to this debt. This will happen even if you are under an existing payment plan. If you’re unable to clear your tax debt immediately or within the filing deadline, enter into a payment agreement, or an installment agreement, with the IRS. This will help minimize the imposition of penalties and interest, and help you avoid enforcement actions related to collection.<\/p>\n\n\n\n

If you want to learn more, read our article about backup withholding<\/a>.<\/em><\/p>\n\n\n\n

3. Unfiled tax returns from previous years<\/strong><\/h3>\n\n\n\n

If you have unfiled tax returns from previous years, the IRS can initiate a \u201cdelinquent return inquiry\u201d. They will freeze your refund until you file all outstanding returns and pay any related tax bills.<\/p>\n\n\n\n

Learn <\/em>how to file your income tax return<\/em><\/a>.<\/em><\/p>\n\n\n\n

4. Issues with your tax account<\/strong><\/h3>\n\n\n\n

Issues with your tax account, such as identity theft or discrepancies related to your dependents, also stand as reasons for refund withholding. Provide proof of your identity or resolve the dependent-related discrepancy, and the IRS will release your refund within a few weeks.<\/p>\n\n\n\n

5. Owing other types of debts<\/strong><\/h3>\n\n\n\n

Your refund can also be used to offset other types of debts:<\/p>\n\n\n\n