Paper Filed Return - 3 Week Turnaround

[JohnH]

Just heard from my first return filed for the year. I mailed the return to the client on Jan 8 and he signed & mailed it to IRS on Jan 11th. We had entered his checking account info on the 1040 in the appropriate spaces. He emailed today to say that his refund was deposited to his checking account last Friday (Feb 6th).

That appears to be about a 3-week turnaround. I'm curious how that compares to turnaround time on an e-filed return (with no RAL) since I often tell people it doesn't make enough difference to really matter.

[Gene V]

Just heard from my first return filed for the year. I mailed the return to the client on Jan 8 and he signed & mailed it to IRS on Jan 11th. We had entered his checking account info on the 1040 in the appropriate spaces. He emailed today to say that his refund was deposited to his checking account last Friday (Feb 6th).

That appears to be about a 3-week turnaround. I'm curious how that compares to turnaround time on an e-filed return (with no RAL) since I often tell people it doesn't make enough difference to really matter.

If you file Thursday morning--you get your refund the following Friday (8 days) See
Chart. http://www.irs.gov/pub/irs-pdf/p2043.pdf

That been pretty accurate with my experience. Although some have had their money
Deposited on a Wednesday (about 6 days).

[Koss]

Six Business Days

The first return that we submitted electronically was accepted by the IRS on Jan. 23.

The refund was issued by direct deposit on Feb. 1.

Another return, that was also accepted by the IRS on Jan. 23, had the refund issued by direct deposit on Feb. 4.

I certainly don't tell clients that they'll get their money in one week. I go by the IRS e-file calendar, and I tell clients that there is no guarantee. But it's getting faster and faster every year...

BMK

[S T]

Same here

Depending on "drain times" on efile 6 - 10 days
No RALs - just efile and direct deposit noted.

This is Federal only - not talking about State refunds

Sandy

[Koss]

State Refunds

On e-filed returns with direct deposit, Ohio has been issuing refunds in about seven business days for several years now

BMK

[JohnH]

So I'd be technically incorrect in saying it doesn't make much difference, but more accurate in saying it probably takes a couple of weeks longer on average.

[BP.]

Client asked me if he can track the refund status of his mailed-in paper return (Form 5405) on IRS "Where's My Refund?" page. I really wasn't sure, but I thought not, w/o e-filing. Do you know? Thx!

[Bonnie]

Probably one reason your customer got his refund so quickly is that it was mailed very early in the tax season before the IRS got busy. The longer into the season we get the longer it takes to process papaer returns. Reason being is that once they reach the IRS office, they lay on someone's desk waiting to be put into the computer system. Once inputted they cycle through the same as an efiled return. So you are not just talking about the difference in time the mail takes to reach the IRS. The return does not get processed until someone at that office does what was already done on your computer when you prepared the return. An E-filed return is being processed as soon as accepted at the IRS office, usually the same day. Closer to Apr 15th we get the longer this process takes. So yes, Paper returns do normally take much longer. Your customer just filed really early before there were many returns for the people working at the IRS office to handle. By April they probably take about 2 months.

[JohnH]

BP: Yes, taxpayers can track the status of their refund on the "Where's My Refund" site when paper filing. They can also track it by calling 800.829.4477. The method of filing apparently doesn't make any difference with these two resources.

Bonnie: I don't track every client, but I do spot-check during the tax season. I've never known one to take 2 months even late in the tax season or during the extension period, although it could have happened and the client didn't bother to tell me. Most of my clients have small refunds or owe, and therefore I view e-flinging to be of limited benefit to them or me, but I do take an interest in the ones who have larger refunds just out of curiosity. (Of course, after this tax season none of this will matter anyhow unless IRS provides some sort of opt-out)

[RitaB]

I also have a client

I have a paper filer that says he always gets his DD in about 3 weeks. I don't even remember when he mails it in, but apparently he is doing something right.

I have about half e-filers, and I do charge $20 for e-filing. It is easier on ME to e-file, but most of my e-filers are getting refundable credits that I am paying for, so I try to recover my cost $20 at a time. So far, I've not recovered anything like what I've paid in...

Whine, whine, whine, Rita...

[PIGLEE]

I don't understand, does your software charge you for each e-file? Mine is free. I save lots of money and time if I efile their return. No paper, no toner, no extra assembly time. No lost returns in the mail, easy to check status of efile returns, happy clients, more secure, and I could go on. I started efiling in 1991 and have never charged to efile. I come out way ahead, money and timewise. At one time I had to pay a fee to efile and it was still worth it. I think I was to charge anything it would be to file a paper file.

[Bonnie]

I agree with Piglee. I am tempted to charge for paper returns. Don't do many as I encourage everyone to E-file and most want to anyway. Probably have less than 5 paper returns but everytime I have to assemble them and print all those extra copies, I realize how much more trouble and cost they are.

[JohnH]

Yes, I understand why many preparers prefer efile. I use ATX so there's no extra charge for it, and I'm not afraid of the process. But in my situation I don't want the hassle of being responsible for the actual submission of the return. That's the client's responsibility and I don't care to assume it. I also don't want to mess around with the authorization forms and such that you have to get the client to sign and keep on hand for x-number of years. I don't want to concern myself with "drain times", "where's my ack?", "why did I get a reject?" compliance visits, and all the other stuff.

They mail or drop off their info to me, I prepare the return and send it back to them, and I'm done. I like it neat & clean like that with everybody handling their share of the responsibility. Many of my clients I haven't seen in years, and those I do see only come in to drop off their info. Everything else is handled via us mail, telephone, and email. I don't want to waste time with most of my clients and they don't want to waste time with me. Of course, most of my clients are long-term clients with most of the bugs worked out so we don't have issues with SS# rejects and other similar problems. If I had a lot of client turnover I'd probably be more inclined to efling.

Guess that will all change next year, assuming I keep doing this. Although if there's a way to opt out then all my clients will be signing whatever is needed to make that happen.

[RitaB]

My software

My software does not charge for e-file, and yes, I indicated that it IS easier on me to e-file. However, many of my clients don't care about "that there new fangled e filing stuff", and I do not want to push anything on them. I also find that I kinda enjoy charging people with no liabity who receive $8,000 refunds every chance I get. My personal preference, I suppose. Emotional, not logical.

[BP.]

refundable credits that I am paying for, so I try to recover my cost

Mmhhm!

And JohnH- thx for the info on tracking paper filed refunds. I'm in the e-file 'em all camp.