Turnaround Time on Amended Returns?

[zeros]

I had two amended returns for refunds sent in about 2 months ago. Both have called me about not receiving the refund yet. I am assuming that these are handled manually at first. What is the approximate time it takes to receive refund?

[spanel]

I had two amended returns for refunds sent in about 2 months ago. Both have called me about not receiving the refund yet. I am assuming that these are handled manually at first. What is the approximate time it takes to receive refund?

http://www.irs.gov/Filing/Individuals/Amended-Returns-%28Form-1040-X%29/Wheres-My-Amended-Return-1

Try this handy tool. Usually 6-8 weeks though.

Chris

[JohnH]

Depends on the issue, I suspect. Plus, IRS is claiming they are short-handed, and the best way to make their point is to inconvenience the taxpayers as much as possible, in hopes that will increase pressure on IRS to restore their funding.

So, right now I'd tell clients that 2 months is the average, but don't be alarmed if it stretches to 4, 5,6 months. That way there won't likely be any unpleasant surprises.

[Gretel]

Depends on the issue, I suspect. Plus, IRS is claiming they are short-handed, and the best way to make their point is to inconvenience the taxpayers as much as possible, in hopes that will increase pressure on IRS to restore their funding.

So, right now I'd tell clients that 2 months is the average, but don't be alarmed if it stretches to 4, 5,6 months. That way there won't likely be any unpleasant surprises.

I am sure it also depends when an amended return is send, and certainly if it was e-filed or mailed. I do not think that any amended return mailed towards the end of tax season will be done in two months.

[FEDUKE404]

Realistic turnaround time

Based upon my recent experiences, I would say thinking of a turnaround of two months is nothing short of expecting a miracle. Closer to four to six months seems the norm these days. As noted above, the other variables are the tax issues involved and/or when (tax rush or otherwise) the amended return was submitted.

One recent fiasco involved an IRS notice (from Rhode Island) sent to taxpayer saying the Form 1040X could not be processed because certain required/substantiating forms were absent. Enclosed with the notice were photocopies of the Form 1040X with new "markings" added. Well, the actual (fully complete) amended return had originally been snail-mailed to the appropriate address in the Midwest (Kansas City??). At some point, that return was later faxed to the RI folks. . .and a few pages did not make the transition. ("Efling" was unavailable for the Form 1040X.)

Tax work goes a lot smoother when I don't concern myself with turnaround times for refunds and/or processing of amended returns. Such is totally out of my control.

FE

[TAXNJ]

Form 1040x

I am sure it also depends when an amended return is send, and certainly if it was e-filed or mailed. I do not think that any amended return mailed towards the end of tax season will be done in two months.

FEDERAL 1040X will never happen if "e-filed" - reason is that as of this date FEDERAL 1040X cannot be e-filed. We are told sometime in the future.

[JohnH]

I think it's only going to get worse as IRS looks for more ways to cause pain.
Just a couple of days ago a client got a taste of how they're handling things now.
This is not an amended return, but it is a manually-processed matter.

The original CP200 was issued Nov 3, 2014. We sent documentation on Nov 14, 2014 establishing that it was not valid. (They tried to tax him on a state tax refund received in 2012, when he had claimed the sales tax deduction on the 2011 return.) We have received no correspondence or response of any kind since then. A few days ago he received a Notice of Deficiency. So I think they basically ignored what we sent in and are letting it go to the next step. Since there's only $130 involved, I think it's easier to just let the system grind him down, and I can't help but wonder how many other taxpayers are getting the same treatment. I'm going to send an immediate follow-up and request "Audit Reconsideration", but I've told him not to be surprised if they ignore that as well. And if they do, it isn't worth anyone's time to fool with it further.

[TAXNJ]

Advocate

I think it's only going to get worse as IRS looks for more ways to cause pain.
Just a couple of days ago a client got a taste of how they're handling things now.
This is not an amended return, but it is a manually-processed matter.

The original CP200 was issued Nov 3, 2014. We sent documentation on Nov 14, 2014 establishing that it was not valid. (They tried to tax him on a state tax refund received in 2012, when he had claimed the sales tax deduction on the 2011 return.) We have received no correspondence or response of any kind since then. A few days ago he received a Notice of Deficiency. So I think they basically ignored what we sent in and are letting it go to the next step. Since there's only $130 involved, I think it's easier to just let the system grind him down, and I can't help but wonder how many other taxpayers are getting the same treatment. I'm going to send an immediate follow-up and request "Audit Reconsideration", but I've told him not to be surprised if they ignore that as well. And if they do, it isn't worth anyone's time to fool with it further.

Have you tried the Taxpayer Advocate Office?

[JohnH]

No, but it's a matter of how long we want to spend on hold and what I'd have to charge the client to do it.

[TAXNJ]

Congress rep

No, but it's a matter of how long we want to spend on hold and what I'd have to charge the client to do it.

Then try your Congress Representative

[Gretel]

FEDERAL 1040X will never happen if "e-filed" - reason is that as of this date FEDERAL 1040X cannot be e-filed. We are told sometime in the future.

Oops, good catch, I got confused between prior year tax return and amended tax returns.
Thanks.

[JohnH]

For $135?
I'll suggest that to my client and see how he responds.

[TAXNJ]

Running

For $135?
I'll suggest that to my client and see how he responds.

Sounds like you are almost out of options. Frustration with the turnaround time is record setting lately. But your efforts need to be compensated like the attorney who goes to court but the court ran out of time with another case and after 2 hours, rescheduled the attorney's case for another date & time. The attorney still gets paid.

[Black Bart]

You ought to give the TA a shot, John.

I'm generally a big fan of these people (Taxpayer Advocates -- they've got some smart people working there who are sympathetic to your problem -- much more so than PPS). I contacted Little Rock (each state has their own--see map link below) a few weeks ago (about 941s, not 1040X). The phone was answered after three rings by an actual human being. She said "Fax me a POA", I did and explained the situation. Computer keys clicked as she pulled up the IRS records and simply said "This is absurd! (meaning what IRS had done to us). Okay, I'm assigning a case number and you'll hear from us." One month later the client got a notice that the refund was in the mail; the following week the agent actually called me to see if it had worked out. Overcome with emotion at finding intelligent life at IRS, I offered to send her flowers and she said thanks, but it wouldn't look good to her manager.

http://www.irs.gov/Advocate/Local-Taxpayer-Advocate

Talk to my congressman? Uh-uh; no thanks. You'd have better luck getting through to a doctor on the phone --two layers of receptionists and then (maybe) his nurse will call back. Calls and emails to the congressional rep get you a form letter or an email saying thanks and your views will be given serious consideration.

Re amended returns, a few years ago I talked with a Memphis IRS agent about one - same complaint (slowness). I speculated that 1040Xs were "a low priority" at IRS, but he said no, they were not; it was just that they didn't have enough people to handle the volume. While a nice, reasonable person I regard his explanation the same as phone messages ("Your call is very important to us, please hold for..."); that is, if we're so da** important, why don't they have enough people answering the phones?

[JohnH]

I think it's only going to get worse as IRS looks for more ways to cause pain.
Just a couple of days ago a client got a taste of how they're handling things now.
This is not an amended return, but it is a manually-processed matter.

The original CP200 was issued Nov 3, 2014. We sent documentation on Nov 14, 2014 establishing that it was not valid. (They tried to tax him on a state tax refund received in 2012, when he had claimed the sales tax deduction on the 2011 return.) We have received no correspondence or response of any kind since then. A few days ago he received a Notice of Deficiency. So I think they basically ignored what we sent in and are letting it go to the next step. Since there's only $130 involved, I think it's easier to just let the system grind him down, and I can't help but wonder how many other taxpayers are getting the same treatment. I'm going to send an immediate follow-up and request "Audit Reconsideration", but I've told him not to be surprised if they ignore that as well. And if they do, it isn't worth anyone's time to fool with it further.

Follow up on this: Client called today to say he received a "no change" letter in response to my Audit Reconsideration request, which closes the matter. But it should never have gone this far, and I'll bet that over half the people who get a Notice of Deficiency just go ahead and pay it.