Is the IRS processing returns or are they too busy with COVID payments

The IRS processing centers have been closed since roughly mid- March. If you send a paper return (with a physical check), it is probably sitting in a trailer along with millions of other paper returns. It will be processed when the IRS reopens. What little work appears to be happening at the IRS is being done remotely. The practitioner and consumer phone lines are partially staffed now, so you might be able to get a status update through them. Otherwise, I would just sit tight and wait. Your check won't be stale until October, so there's plenty of time for it to be processed.

Ira Smilovitz, EA Leonia, NJ

I submitted about two weeks ago via professional tax software two federal returns each with a CA resident return and a HI nonresident return. All 6 returns were accepted and processed. One federal return, and both HI returns had direct debits for payments. All debits were processed.

I can't imagine a stale check would prevent the IRS from processing it. In the past they have even processed checks on dates before the check was actually received. Somehow.

ira smilovitz snipped-for-privacy@gmail.com wrote in news: snipped-for-privacy@googlegroups.com:

What about electronic returns that have a refund coming? I keep telling one of my adult kids to file their return, because they have a big refund due from the IRS. They file electronically with one of the online free services.

Would you think that electronic filings are also not being processed?

In article <XnsABCC8BB2557D0Borisinvalidinvalid@144.76.35.198> you write:

We filed my late father's final return electronically on April 7 and got the refund deposited on April 15. I think the IRS was already pretty well shut down by then.

See

where it says: " All taxpayers should file electronically through their tax preparer, tax software provider or IRS Free File if possible. The IRS is not currently able to process individual paper tax returns"

and

"the IRS continues to process electronic tax returns, issue direct deposit refunds and accept electronic payments"

Electronic returns _are_ being processed. Here's how I know:

I filed my 2019 return late in March of this year. Then in the second week of April (if I remember right) I checked on line for the status of my stimulus payment. To do the check I had to give my AGI from my latest return. I gave my 2019 AGI, and it matched the IRS records successfully, so they must have processed the 2019 electronic return.

Anything that can be processed without human intervention is still being done.

Ira Smilovitz, EA Leonia, NJ

I bet checks are still being deposited. True for California paper returns.

Each state has its own pandemic processes and determinations about what parts of its government will operate in what manner. This is done independently of the IRS. Payments to the IRS may (or may) not be being processed at this time if sent separately from a paper tax return. I don't know the answer to that. But I do know that paper returns are not being processed at this time. I would expect the IRS will announce the resumption of its regular functions as they happen, even if only to the professional tax community.

Ira Smilovitz, EA Leonia, NJ

Yes, all true. I don't know the answer, but I bet the IRS is still depositing checks. Anyone with first hand knowledge?

Payments without a return (that is, with only a 1040-V voucher) go to a separate lockbox address. It's possible (I don't know) that these are maintained by non-IRS personnel who may have different pandemic rules. Checks received at an IRS campus are stored with all incoming mail in trailers waiting for the IRS to return to operation.

Ira Smilovitz, EA Leonia, NJ

O.P. here. After three months, I assumed that the IRS never received my return. I was about to submit a duplicate when I checked my bank statement one more time. The check that I wrote on April 16th (with my return) was negotiated on July 14th.

On a related note: The foreign tax credit was disallowed on my 2018 tax return because I filled out form 1116 incorrectly. I corrected form 1116 and submitted an amended return in early January. In February, before Covid, I received a letter that "they were working on it, but it would be another month" I'm assuming Covid put that one on the way-back burner.

Correct. "Where's my Amended Return?" may show updated information, but I wouldn't hold out much hope.

Ira Smilovitz, EA Leonia, NJ

FYI, Another data point: A 2019 paper return mailed on April 5 to the Fresno CA service center was recently processed and the refund was direct deposited on August 20.