Processing Time for Amended Returns Up to 20 Weeks or Longer Per IRS

Wouch, Maloney - Accounting Firms for Small Businesses - Wednesday Wisdom Graphic

The IRS reported that processing delays and backlogs are being cleared at a faster rate when compared to last year. While all paper and electronic individual returns received before January 2023 have been processed, certain returns have a processing time of up to 20 weeks or longer.

For those of you waiting for a response from the IRS, and wanting to know what the timeframe is for a response or action, the IRS recommends that you visit their website regarding IRS Operations: Status of Mission-Critical Functions.

Top Delays

The top service delays listed include:

Processing Time

On May 19, 2023, statistics and wait times for tax returns, payments, refunds, and correspondence were updated with some reporting a processing time of up to 20 weeks or longer. Below is a chart of the most recent updates.

Form NumberName of FormUnprocessed FormsProcessing TimeUpdated On
Form 1040-XAmended Individual Tax Return1.43 millionUp to or more than 20 weeks5/13/2023
Form 941Employer’s Quarterly Federal Tax Return2.1 millionProcessed in the order received5/18/2023
Form 941-XAdjusted Employer’s Quarterly Federal Tax Return879,000Not processed until the related 941 is processed5/17/2023

Other process updates provided earlier this year included Form W-7, Requests for Individual Taxpayer Identification Numbers (ITIN). The IRS reported in April 2023 that Forms W-7, are processed as they are received, and they were working on March applications in April. Be certain to promptly reply when responding to requests about your application.

Victims of Identity Theft

For anyone who submitted a Form 14039 or an Identity Theft Affidavit, Form 14039-B, expect to wait approximately 430 days to resolve your identity theft case. The increase in identity theft as well as extenuating circumstances caused by the pandemic has increased the number of cases and delays in processing. In January, the IRS began taking steps to reduce the processing time to 120 days or less.

Status Updates

To check on the processing status of your returns, you can check online.

For 2022, 2021 and 2020 tax year returns, visit Where’s My Refund?

You may also track the status with the IRS2Go Mobile App available on Google Play, the App Store and Amazon.

Do Not File or Respond Twice

As always, the IRS reminds taxpayers to not file duplicate forms or respond to letters or notices more than once. The processing responses to opening mail is taking longer than usual due to resource restrictions. After a taxpayer responds to a letter or notice, there is no need to respond again. All replies are processed in the order received and your replay is recorded by the date it was received, not the date reviewed.

Questions?

Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.

DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update, and other related communications are intended to provide general information, as of the date of this communication, and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.