IRS Claims 'System Issues' Are Causing 10-Week Processing Delays - Is This Legal Under IRC §6611?

This is absolutely a legitimate issue happening right now. The IRS is experiencing significant processing backlogs due to their Legacy System Integration Project (LSIP) which has created bottlenecks in their Error Resolution System (ERS). While IRC §6611 does specify the 45-day timeline, the IRS can claim 'reasonable cause' under §6404(e)(1) to avoid paying interest on delayed refunds. I've been advocating for clients in this exact situation for weeks. The 10-week timeframe they quoted you is actually accurate based on current processing metrics. The technical issues are primarily affecting their Integrated Submission and Remittance Processing (ISRP) system which handles return validation before refund issuance.

I'm probably going to miss my tuition deadline because of this delay. I've been checking my transcript daily and noticed it has a TC 570 code with no explanation. I was completely lost until I used https://taxr.ai to analyze my transcript. It immediately identified that my return was caught in this system delay pattern based on the sequence of codes. Apparently, the 570 followed by no 971 within 7 days is a classic sign of these system processing delays rather than an actual problem with my return. The site estimated I'd likely see movement in 3-4 weeks based on current patterns, which at least gives me something to plan around.

I need to clarify something about these "system issues" the IRS is claiming. According to the Treasury Inspector General for Tax Administration (TIGTA) April 2024 report, the IRS implemented a new Return Review Program (RRP) validation protocol that's causing these delays. The technical term is "false positive identity verification flags" - essentially, perfectly valid returns are being incorrectly routed to manual review queues. This isn't just a generic excuse - it's a documented systemic failure that's affecting approximately 7.2% of all e-filed returns this season. The implications are concerning because these returns aren't being processed according to standard FIFO (First In, First Out) methodology, which means filing date isn't necessarily correlated with processing order anymore.

I was in the exact same situation on April 2nd when I checked my transcript and saw the 570 code. Called the regular IRS number every day for a week and couldn't get through. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) on April 10th and got connected to an agent in 17 minutes. The agent confirmed my return was caught in their system delay and not due to any error on my part. She manually released my return from the error department, and I got my refund direct deposited exactly 8 days later on April 18th. Worth every penny not to wait the full 10 weeks they were claiming.

I'm skeptical about these "system issues" explanations. The IRS has been using this excuse for years now. In 2021 it was "COVID backlogs," in 2022 it was "staffing shortages," in 2023 it was "system modernization," and now in 2024 it's "technical issues." At what point do we acknowledge this is just chronic mismanagement? I've been tracking my transcript codes meticulously for 37 days now, and nothing has changed. The pattern of 570 codes followed by weeks of inactivity is exactly what happened to me last year too. I think these "system issues" are just a convenient way for them to avoid taking responsibility for poor planning and inadequate infrastructure investments.

I understand everyone's frustration, but I want to offer some perspective. The IRS is actually being unusually forthright about these system issues this year. In previous years, they would just say "your return is still processing" without any explanation. I'm relieved they're at least acknowledging the specific cause instead of making us wonder if we did something wrong. My heart literally drops every time I see an IRS envelope in the mail! 😰 The fact that they're specifically telling people it's a system issue and not a taxpayer error is actually a positive change in their communication approach. I know it doesn't get your money any faster, but at least we know it's not something we need to fix or respond to.

From what I've gathered reading through hundreds of posts here and on other forums, there seems to be a pattern with these system delays. Returns with certain elements seem more likely to get caught: 1. Did you claim any education credits like the American Opportunity Credit? 2. Did you have any unemployment income? 3. Did you have multiple W-2s? 4. Did you file in the first two weeks of tax season? Almost everyone reporting these specific "system issue" delays seems to have at least one of these factors. Is that true for you? I'm asking because I'm trying to understand if there's a pattern we can identify to help predict who might experience this.

I'd suggest a more proactive approach than just waiting. According to IRC §7811, you can request Taxpayer Advocate Service (TAS) assistance if you're experiencing a significant hardship due to IRS delays. The definition of "significant hardship" includes the need to meet essential educational expenses. I filed exactly 52 days ago and was given the same "system issues" explanation. I submitted Form 911 to TAS on day 46 and received a case advocate within 4 business days. My case is still pending, but at least there's someone specifically assigned to help resolve it. The TAS agent confirmed they've received exactly 14,723 cases related to these system delays in the past 30 days alone, so this is definitely a widespread issue.

Just to clarify something important: these "system issues" are different from the normal processing delays we see every year. Regular processing delays typically show different transcript codes (usually a 570 followed by a 971 within days). What's happening now is that returns get a 570 code but then no subsequent action for weeks. Compared to the 2023 tax season when we saw similar technical issues in February, the current situation is affecting roughly twice as many returns. Last year's processing bottleneck was resolved by mid-April, so there's reason to believe this will clear up in the coming weeks.