Backlog

Monday was the first day that returns with itemized deductions and several other deductions could be e-filed and I am sure that most preparers had a stack of returns they were holding. I know I did. So when the returns that would have been normally filed on Monday and all the held returns were filed the inevitable happened...a logjam.

Normally, I file a return in the evening and get the acknowledgement for it in the morning. This week they have been running a day behind for me. (The actually delay depends on the service center a preparer files with.) I was a little concerned last night because of the cut off for the IRS drain times. Unless the return is selected to be processed under the MeF, the IRS holds the returns until Thursday noon, drains the returns in their holding "tank" and begins processing them. A return that comes in Thursday afternoon will sit there for a week until the next drain. The good thing is that it makes refund dates fairly predictable.

My concern was that the returns I sent and were stuck in the backlog would miss the cut off and I would have to contact a bunch of clients to tell them that their refund will be delayed. Right now it looks okay for my clients. But if your return had to be held until the IRS opened e-file for it, please don't spend the money until you actually receive it. The backlog may have delayed your refund.