Help! IRS is holding my refund because of an In Office Error?

Question

My 2007 refund and stimulus rebate are being held by the IRS because I for some reason did not file taxes in 2004. I filed 2004 and sent it in the first week of May 2008, then had to resend it because they said they didn't get it. I then had to send in an original signature page as well. I called today to check on the status and they said the only thing holding up my refund is the fact that there was an in office error (internal IRS error) that was in the process of being resolved. Has anyone had this happen? How long does it take to do this? I desperately need my refund and would like to know if there is anything or anybody that I can call to speed up this process. Thanks in advance!

Answer 1

There is no way to speed this up.

It takes as long as it takes to get the 2004 tax return processed and into the system.  Once that's done and the tax (or lack there of) is established for 2004, the 2007 refunds can be released.

The IRS normally says to allow 8 weeks to process the old tax return--if every thing is in house--that takes you up to Mid July.  When errors happen, they ask you to allow another 30-60 days--that's mid August to Mid Septempter.  If it goes beyond then, the taxpayer advocate will get involved.

Of course, if you had filed in 2004, you wouldn't have this problem.  You can't just file in the years you think you might have a large refund.  If you normally file as anything other than single, no kids, the IRS isn't going to guess that you would have gotten a refund if you had filed, so when they finally flag your account, no further refunds go out until the missing returns are filed.

Nag, nag, nag.   Your post wants to blame the IRS because you don't have *your* money yet.  My post points out that the blame is yours, not the IRSes and that you MUST WAIT.  You don't like any part of my answer so you say it must be wrong.  *sheesh.*

Answer 2

it is that when you file late and then IRS has to go back for more information in your case you didn't sign and use current date on your return.  When IRS finally receives the information then research has to be made to associate your signature page to your tax return to began processing.  It does take longer to process previous year tax returns usually 12-14 weeks, and if you didn't mail the return to the correct address which since it was a "Refund Hold" the address you were to mail the return was the Interal Revenue Service in Austin TX and had a PO box number and a "stop" number.  IF you didn't mail to the special address then when the return was received and weeks went by until it was actually forwarded to the correct processing department.

Be patient you will get your refund in a couple of weeks.

IRS is having to process double the returns this year due to the stimulus and refund hold programs.  and previous year tax returns must be processed manually.  While you called did you verify that all the tax returns have been filed?  To be in full compliance with the IRS you must have the tax returns for 2002 through 2006 filed.

Good luck and be patient, IRS is trying to get all "old" tax returns filed, which returns as old as 7 years are having to be processed because taxpayers didn't file timely.