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IRS Holds 2020 Tax Returns

Updated: May 10, 2021

As warned before, there will be delays in the processing of tax returns this season. They are still processing 2019 tax returns, while processing 2020 tax returns, distributing stimulus payments weekly, plus amending tax returns that have already been filed to reflect the new tax laws that were passed earlier this year regarding the Premium Tax credit and the Unemployment adjustment. In addition, the new protocols to crack down on fraud. Currently the IRS has about 30 Million tax returns on hold for MANUAL PROCESSING.

Article Announcement - Tax Delay

Holds for 2020 tax law adjustments:

  • If you filled before the law changes, your tax refund will be held to adjust for the unemployment,

  • Adding stimulus for a child that was born in 2020,

  • Adjustment for the PTC if you had Obamacare, or

  • if you are self employed claiming covid credits for being sick or taking care of someone sick with covid.

  • If you chose to use your 2019 income in 2020 to qualify for child tax credit or EITC, your tax return has to be checked manually.

Common reasons for holds since 2012:

  • If you have a change in name, address, or filing status, you refund will be placed on a verification hold.

  • If this is the first you have filed in years, you will be placed on a verification hold.

  • If you claimed a dependent(s) you haven't claimed before, you will have to verify that you have the rights to do so.

  • If a dependent has been bounced around on multiple tax returns multiple years, you will have to verify that you have the rights to claim that dependent.

  • If you claim the school credit, you will have to prove you attended a college.

  • If you have dependent care costs and took that credit, you may prove that expense.

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