People are still waiting for their unemployment tax refund; IRS has 436,000 stuck in the Error Resolution System

Due to the American Rescue Plan Act, many Americans who filed their tax returns before the tax break existed are entitled to a $10,200 tax exemption.

This made it so unemployment checks that were sent during the pandemic would not count as earned income.

Refunds started being sent out in May and continued through summer, but it was announced they would be finished by the end of summer.

Data shows that 13 million have been processed so far, and since summer has ended the IRS is being quiet about a schedule for the rest.

Erin Collins, of the independent Taxpayer Advocate Service within the IRS, says that there are 436,000 returns that still need to be processed and are currently stuck in the Error Resolution System.

Each one needs to be manually reviewed before a refund is sent or the error is determined to be a reason to not send one.

Until this is done the IRS can’t decide if a refund is due to the filer.

There is no way to check the status of this type of refund unfortunately, but there are some ways  to get an idea.

One way is that the IRS sends filers letters when their returns are corrected and they’re sent within 30 days of the correction.

The letter will inform the taxpayer if they’re getting a refund or if it’s used for debt.

Another way to check is for the filer to comb over their tax transcript if they have an online account with the IRS by clicking “View Tax Record” and “Get Transcript.”

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