Nichols & Company ensures that the IRS accepts your return electronically; but after that point, they do not communicate with us about the status of your return.
We have heard from our clients and in the news that the IRS is slow to process returns and issue refunds this year. If you have been impacted, here is some additional information:
It appears these delays are due to numerous factors at the IRS, including staffing shortages, IRS being forced to shift resources to issuing stimulus payments, and the IRS’ recent task of developing a system for issuing advanced child tax credit payments beginning in July.
While this makes all of us unhappy, we must remember that Congress funds the IRS and also dictates where the IRS must direct its attention and resources.
We are very concerned about the delayed processing and have written letters to our legislators, asking them to help refocus the IRS’ efforts towards tax return processing and issuing refunds. We also believe that IRS needs more funding from Congress to serve taxpayers. If you, too, are impacted by these delays, we encourage you to write to your legislators as well.