Haven’t gotten your Form 2290 refund yet? Do not fret. We’re here to help! In this article, we will share a few reasons why your refund might be delayed; plus the steps you can follow to ensure timely refunds, every time. Let’s start.
Reason 1: Spelling errors
We all make mistakes. Even when we are filing our tax returns. But such errors could sometimes cost us our refund. When you file a return that has spelling mistakes, the IRS will spend more time to process it, which slows down your refund. This applies if you’re filing it manually or online. If such mistakes are spotted, the IRS will contact you and clarify the errors you made.
Going forward, always be careful while filling information on your 2290 form. After entering all the details, it helps to review all the details once again so that any mistakes you made can be corrected.
Reason 2: Incomplete return
While filing your Schedule 6 (Form 8849), you must ensure that you fill in all the necessary details. If information is missing on your Form 8849, it will lead to delayed refunds.
Information such as Employer Identification Number, reason for the refund request, and the tax amount can significantly hold up a refund. If you’ve filed paper returns, don’t forget to attach necessary documents, for example, receipt of sale for sold vehicles.
It’s best to include documents that the IRS(1) has requested from you. This will help the IRS process your return quickly and release your refund on time.
Reason 3: Paper filing
When you paper file your return, the IRS will take a longer time to process your return. The estimated processing time is between 8 and 12 weeks. That means you will have to wait longer for a refund. Moreover, if the IRS is sending you the check via U.S. mail, it will extend the delivery time further.
Reason 4: Tax calculation errors
If you accidentally made a calculation error on the refund amount —like incorrectly adding, instead of subtracting, deductions—your refund could be delayed or even rejected. Before filing it is important to double-check your calculation to prevent such errors. Better yet, you can e-file your return through eForm2290 for an error-free filing process.
Reason 5: Identity theft
If you’ve fallen prey to identity theft, the IRS will increase the processing time of your refund.
If a suspicion arises that someone is trying to steal your identity by filing a fake return, the IRS will hold up your return until they investigate the matter and ensure that you are a legitimate filer.
Reason 6: Non-payment of tax
If you have pending HVUT payment or have not paid interest or penalties, the IRS can freeze any refunds due until you file the old return. You need to file your past-due return to get your refund. If you owe tax on old returns, the IRS will take that amount out of your refund. That is why it is important to pay all your HVUT payments on time and pay any penalties and late payment fees that you accrue.
Reason 7: Early / Late filing
Your refund could be delayed if you filed your Schedule 6 (Form 8849) early and/or too late. Also, you need to file for a refund within three years of form 2290 filing for that particular vehicle.Last minute filing can also delay your return considerably. If you paper file your return, processing could be delayed due to the increased number of people filing at the time. In some cases, if you file late, the IRS updates their tax software which can sometimes result in further delay.
Reason 8: Amended return
Amending your 2290 tax return can lead to a delay in refund. Amended returns must be mailed, rather than filed electronically. It takes up to 3 weeks for your amended return to show up in the IRS system. It takes another 16 weeks for it to be processed. Which means you will have to wait several months before you can get your refund.
Reason 9: Wrong bank account details
If you have made a mistake and specified the wrong bank account number, your refund will be delayed. This applies to routing number and account number as well. You need to ensure that you don’t make mistakes while providing your bank account number as the money could be sent to somebody else's bank account.
Reason 10: Mail delivery delay
It will take about six to eight weeks to get your paper check through mail. So even if you file an accurate paper tax return, your refund will take some time to reach you. Sending a check through the mail may also cause the check to get lost or being sent to the wrong address. That would delay your refund, and you might need to get in touch with the IRS to request a new check.
Now that you know the reasons for refund delay, we hope that you’ll be extra cautious while filing your next return. You can get in touch with the IRS for help with your refund. However, we recommend that you file form 8849 with an IRS-approved e-filing service provider like eForm2290.com as it significantly reduces filing errors and mishaps. Moreover, online filing is much easier and hassle-free than manual filing, especially when timely assistance and alerts are the need of the hour.