Identity thieves are able to use stolen information to file fraudulent tax returns. Most taxpayers may not notice that their identities are stolen or that someone already illegally filed their tax returns. Sometimes the only way that a taxpayer will find out that they are a victim of identity theft is because of the inordinate amount of time it takes them to receive their tax refund. The IRS provides an estimate to taxpayers on the average amount of time it will take for their tax return to be processed. If a taxpayer submits their tax return through the mail, the IRS estimates that the tax refunds usually take approximately six weeks to be processed. If the tax return is filed electronically, tax refunds should be issued within three weeks from the confirmation of reception notice from the IRS. Amended returns will result in a refund being issued eight to twelve weeks. Taxpayers should wait 72 hours after filing electronically or 3 weeks after mailing a tax return before checking on the status of a refund.
If a tax refund is not received within the IRS given time frame without notification of additional time being necessary to send out returns, a taxpayer should contact the IRS and start to find out what is causing the delay. Some people have struggled with being able to receive their refunds after being a victim of identity theft. Taxpayers who are victims may need to seek professional tax services if they are unable receive their incomes. Some victims have even sued the IRS for their refunds.
Tax refunds can have a large impact on individuals with a small financial budget. Some people depend on the yearly tax refund to help them pay their bills. When identity theft occurs, the taxpayer may miss out on their refund. They may also be required to spend a considerable amount of time and effort to get their tax refund and their identity secure. Suing the IRS may not be the best solution for settling tax issues with the IRS.