Refund Delays

Today TaxMama hears from Dee in Virginia, with this concern. “I filed an amended return for 2007 in July of 2009 and am expecting a refund. I have called the IRS numerous times for a status and was told ‘’It is assigned to a desk, but held up because of tax credit overload and later (11/13/09) that the return was ‘’under review’ I have not received any written correspondence from the IRS. Is there a time limit on a response or acknowledgement from the IRS? What the heck is going on?!”

Dear Dee,

Great news! IRS acknowledges that they have the return. That’s not the case for many other amended returns that have disappeared in the system.

Bad news. IRS really is overloaded with homebuyer credit returns and net operating loss amendments – and they just don’t have enough staff to handle them all MANUALLY in any efficient time frame. Expect a delay of 4-6 months.

More good news! If the return is ‘under review’, that means someone has the file and is working it. You should get some correspondence soon. (Note: Soon could mean 60 days.)

Even more good news! You will get interest on your refund. The rate is at 4%, which is higher than you’re going to get from any bank right now. (See the Resource Box below for the current interest rates for payments and refunds.)

So, kick back, relax, and let IRS take their time to get you the correct refund!

And remember, you can find answers to all kinds of questions about IRS refunds and other tax issues, free. Where? Where else? At

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