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This reminds me of last year's tax season when the IRS suddenly switched my refund from direct deposit to a check without warning. Back then, it took exactly 14 days from the original deposit date for the check to arrive. I remember checking my mailbox obsessively every day. The most frustrating part was that their system showed "payment issued" but didn't specify it was a physical check until I called. I wonder if they're using the same process for these CTC conversions or if they've improved their notification system?
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I know how stressful this can be! 😓 The good news is that the IRS has actually improved their systems for handling these older claims. First, make sure you're using Form 4506-T to request the transcripts if you can't access them online. This will show exactly what's on file with the IRS. For the economic impact payments specifically, the IRS created a special lookup tool, but it's been discontinued. However, the transcripts will show if these payments were issued. If they were issued but never received, you'll need to request a payment trace using Form 3911. Don't worry too much about the complexity - take it one step at a time and you'll get this resolved for him!
According to Internal Revenue Code §6511, you must act quickly on the 2021 tax year! Per IRS Publication 556, the deadline for claiming a refund is the later of 3 years from filing or 2 years from paying any tax. If he needs to file an original return for 2021, the absolute deadline is April 15, 2025. For the Economic Impact Payments, Notice 2021-36 specified they must be claimed as Recovery Rebate Credits on the appropriate tax year return. I'd recommend scheduling an appointment at a local Taxpayer Assistance Center rather than trying to handle this by phone. You can schedule at 844-545-5640, but call exactly at 7am Eastern when their system opens for appointments.
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According to the IRS Operations Dashboard at IRS.gov/operations, they're currently processing returns received through early March. The TaxProForums.com discussion from yesterday confirms many tax professionals are seeing 45-60 day processing times for returns with any investments or self-employment income. If your family member has either of those, that might explain the delay.
I had a client whose return was filed February 26th this year with significant investment income. Per Internal Revenue Manual 21.4.1, returns with Schedule D transactions require additional verification during peak processing periods. His return finally processed on April 12th after 45 days. If your family member reported stock sales or dividend income, this is likely causing the delay as the IRS matches those against Forms 1099-B and 1099-DIV from financial institutions.
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Have you tried checking your refund status directly through the IRS website instead of IRS2Go? According to the TaxPro forums (https://www.irs.gov/refunds), the mobile app sometimes shows different information than the web portal. Also, SBTPG has a separate system for tracking refunds that might have more current information: https://taxpayer.sbtpg.com/. I'm curious if you're seeing the same status across all these different resources?
Isabella Costa
Be careful with over-relying on transcripts. I've seen numerous cases where users misinterpret Transaction Code 570 as an audit when it's just a temporary hold. The IRS Cycle Posting patterns and TC sequencing can be misleading if you don't understand the underlying systems architecture. While transcripts provide valuable data points, they require contextual interpretation within the IRS's processing framework.
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Malik Jenkins
Transcripts are essentially the backend database view of your tax account. They contain Transaction Codes (TCs) that indicate specific actions taken on your return. For example, TC 150 indicates your return was processed, TC 806 shows withholding credits, TC 570 indicates a temporary hold, and TC 971 often precedes correspondence. The Account Transcript is most useful during filing season, while the Return Transcript shows line-by-line data from your actual return. Wage & Income Transcripts can be helpful for verifying reported income. The Record of Account combines return and account information into one comprehensive view.
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Eduardo Silva
•This is incredibly helpful! I've been checking exactly 3 times per week and wondering what all those codes meant. The IRS explanation of TC 570 was so vague, but now I understand it's just a temporary processing hold. Thanks for the detailed breakdown!
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Leila Haddad
•I think I'm understanding this, but could you clarify something? If I see a TC 150 on my transcript, does that mean my return is fully processed, or just that they've started processing it? And roughly how long after TC 150 might I expect a refund, assuming there are no holds?
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