Taxpayers May Have To Deal With 'Extreme Delays' In Receiving Tax Refunds

As the new tax filing deadline of July 15 approaches, a report from the National Taxpayer Advocate (NTA) is warning members of Congress that taxpayers could face "extreme delays" in getting their refunds this year.

The IRS is already facing a backlog of more than 4.7 million returns after the agency stopped processing paper tax returns in May due to the coronavirus pandemic. While most taxpayers file their returns electronically, the NTA said that many low-income taxpayers still file paper returns.

"While the overwhelming majority of taxpayers file electronically, taxpayers who file paper returns are experiencing extreme delays in processing their returns," the report said, adding: "Many taxpayers are facing financial hardship associated with the COVID-19 crisis and need the IRS to process their paper-filed returns as soon as possible and release their refund."

The IRS said that it is processing returns in the order they received them. During the closure, IRS offices received about 10 million pieces of mail, and roughly half of them are believed to be paper tax returns.

If you have filed your tax return, you can check the status of your refund using the agency's "Where's my refund?" tool.

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