Is your amended tax return still in limbo?

If you are among the more than 2 million people who have been waiting since last year for your amended IRS tax return to be processed, you are likely frustrated — and with good reason.

A reader lamented that she filed an amended return for her 2019 taxes and received an acknowledgment from the IRS of receipt, but is still waiting for a response.

The reader’s letter does not come as a surprise.

National Taxpayer Advocate Erin M. Collins has made note of unprocessed amended tax returns. The role of the national taxpayer advocate is to advocate on behalf of taxpayers and help them resolve issues with the IRS.

In November, in a blog (tinyurl.com/y5zc8f3h) on the website of the Taxpayer

Advocate Service, Collins wrote: “I have made the difficult decision to suspend accepting cases where the sole issue involves the processing of amended returns until the IRS is able to work through its backlog . ... Under our current procedures, TAS does not accept cases in which we cannot meaningfully expedite or improve case resolution for taxpayers. Amended returns fall into this category.”

According to a post on the IRS website, “As of January 8, 2022, we had 2.3 million unprocessed Forms 1040-X. We are processing these returns in the order received and working hard to get through the inventory. The current timeframe can be more than 20 weeks instead of up to 16.” See the IRS website (tinyurl.com/yckwuuhd) for more information on amended returns.

Why the extended delay? Collins, in her annual report to Congress in January, pointed out some of the challenges for the IRS. While the number of individual taxpayers the IRS serves has increased approximately 19 percent since 2010, its workforce has shrunk by about 17 percent. The COVID-19 pandemic also adversely affected IRS operations. However, Collins said that the IRS “performed well under the circumstances.”

Meanwhile, what is the outlook for people awaiting the completed processing of their amended return?

I reached out to an IRS spokesperson, who said, “Our folks are working hard to process returns, both original and amended. If [a taxpayer is] already aware that we’ve received their amended return, our folks will process it, though ... it could be a while.”

The spokesperson said you can monitor the progress of an amended return by checking the “Where’s My Amended Return?” tool at IRS.gov (tinyurl.com/4kdvdzb8). The available information includes when the amended return has been received by the IRS, when an adjustment has been made to a taxpayer’s account (refund, balance due or no tax change), and when the processing has been completed.

In case you’re thinking of calling the IRS, an online FAQ discourages calls — calling the IRS will not get an amended return processed any faster (tinyurl.com/4xns3pey). The IRS will contact you if more information is needed to process an amended return, according to the FAQ.

If your amended return calls for a refund, “any existing balance due, plus any accumulated penalties and interest, will be wiped out,” according to the IRS spokesperson. Plus, you may earn some interest. “When it takes longer than 45 days to process a refund claim, interest is paid on the refund,” the spokesperson said.

That’s good news — once an amended return is processed. In the meantime, the waiting continues.

To follow progress, set up an online account on IRS.gov (tinyurl.com/43be4p3h). There you can view the status of filings, make tax payments and access tax records.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant of Stamford) and author, welcomes your questions/comments (readers@juliejason.com). Her awards include the 2021 Clarion Award, symbolizing excellence in clear, concise communications. Her latest book, a curated collection of Julie’s columns, is “Retire Securely: Insights on Money Management From an Award-Winning Financial Columnist.” To hear Julie speak, visit juliejason.com/events.