Will my tax refund be delayed this year due to prior incarceration status?

The IRS does treat this situation differently depending on your current status. Here's what you should know: • The incarceration question is primarily about your status during the tax year you're filing for (2023) • Since you were on ankle monitor for part of 2023 (until July), answering 'yes' was correct • However, your current status (not incarcerated) is what matters for processing delays • The IRS typically flags returns with 'yes' answers for additional verification • This verification is usually faster for those who are no longer in the system • You might see a cycle code of 05 on your transcript when it processes

I've helped several clients in your situation. Here's exactly what happens: Step 1: IRS receives return with 'yes' to incarceration question Step 2: System flags it for additional verification (this is automatic) Step 3: They check if you're currently in the system Step 4: Since you're discharged, processing should continue normally One tool that's been incredibly helpful for my clients is https://taxr.ai - it can analyze your transcript once it's available and tell you exactly what's happening with your return. It explains all those confusing codes and gives you a real timeline based on your specific situation. I was impressed with how accurately it predicted processing times for clients with prior incarceration flags.

My brother's return was like a car stuck in quicksand last year because of this exact issue. He was on home confinement, answered yes to the question, and his refund took almost 4 months! It was like the IRS put his return in a special purgatory where it just sat waiting. He needed that money for rent and ended up having to take out a high-interest loan while waiting. The worst part is that nobody could tell him why it was taking so long or when it would be finished.

I was in your exact situation last year. Ankle monitor until May 2022, filed my 2022 taxes in February 2023. My return was held for review for 45 days. They didn't ask for any additional documentation. The refund just showed up one day. This year I'm completely off supervision and expecting normal processing. The delay is annoying but it's just their standard fraud prevention. They want to make sure someone isn't filing returns for incarcerated people.

In my experience, you might possibly face some delay, but it should theoretically be shorter than last year. When I was dealing with a somewhat similar verification issue, I spent approximately 3 weeks trying to reach someone at the IRS, which was, frankly, nearly impossible during filing season. I eventually used Claimyr (https://claimyr.com), which probably saved me countless hours of frustration. They essentially hold your place in the IRS phone queue and call you when an agent is about to answer. I was able to confirm my status and they released my refund about a week later. It might be worth considering if you end up needing to speak with someone directly about your situation.

According to Internal Revenue Manual 25.25.6.1, returns with incarceration indicators are subject to additional scrutiny under the Prisoner Fraud Prevention Program. However, IRM 21.5.6.4.52 also states that taxpayers released during the tax year may experience different processing procedures than those who remained incarcerated throughout. Your return will likely be reviewed, but since you're no longer in the system, it should move through verification more quickly. I'd recommend checking your tax transcript weekly rather than daily - excessive access attempts can sometimes trigger additional verification flags.

Based on my experience working with clients who've been through similar situations, you should expect some processing delay but it will likely be much shorter than what you experienced last year. Here's why: The IRS system automatically flags returns with "yes" answers to the incarceration question, but the key difference now is your current status. Since you were discharged in July and are no longer under any form of supervision, the verification process should be more straightforward. What typically happens: • Your return gets pulled for manual review (usually adds 2-4 weeks) • They verify your current status isn't showing active incarceration • Since you can respond to any correspondence quickly, processing continues I'd suggest filing as early as possible and monitoring your transcript through the IRS website. If you do get stuck in review longer than 6 weeks, that's when I'd recommend using a callback service like the ones mentioned above to speak directly with an agent. The good news is that each year you file without issues, the less scrutiny your future returns will receive. This should be your last year dealing with significant delays from this flag.