Author Topic: ACA refund not received, action needed?  (Read 998 times)

Loren Ver

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ACA refund not received, action needed?
« on: November 24, 2021, 06:22:18 AM »
So back in June I got a letter from the Department of the Treasury that my taxes were decreased by the amount I repaid in Excess advance premium tax credit and the government was going refund the difference back to me in 2-3 weeks.

Neat.

Well, I still haven't gotten this refund.   

I had no issues receiving any of the other stimulus money (direct deposit right away) so I don't think it is a deposit issue.

I know this summer there were lots of issue with people getting money in a timely manner so I waiting assuming I was one of them.  Is this still the case?

My question is, what is the best course of action?  I hesitate to contact the IRS because every time I have in the past it has just causes lot of waiting and more letters for things that were resolved and would have been resolved by just waiting longer.  My letter said no action needed unless I want to challenge the refund, I don't.  Do I just wait?

Do I just tell my CPA when I do my taxes for the next year?  Call him now?

Something else?

My other concern is this money has tax implications during the year I receive it, and it is not a small amount, so having it roll out the last week of December isn't great for planning purposes.   

Thank you for your thoughts.

Loren

reeshau

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Re: ACA refund not received, action needed?
« Reply #1 on: November 24, 2021, 07:03:43 PM »
This may not apply to you, but I had a similar waiting game that just resolved.

I filed an amended return for 2018 this past February, that gave me a nice refund.  It took some time to process, but in August, the online status showed it had been processed, and I should hear within 4 weeks.  4 weeks went by, plus one more for good measure, and nothing.  We are getting the child credit direct deposited, so I thought it would make sense to be similar, even though the notice said we would receive something in the mail.  It is a lot of money, so, like you, I didn't want to wait until the end of the year for some resolution to happen naturally.

So, I followed this instruction set to game the calling tree and talk to a person.

It turns out there are several things that happened:

1)  The IRS will not automatic deposit amended refunds.  (Here, not the same as your case.  But maybe there is a rule?)
2)  We were overseas in 2018, but have since settled back in the US.  Our US address at the time was my in-laws.  We have our mail forwarded, but the Post Office will not forward federal checks, like tax refunds.
3)  Even though we have filed new tax returns, the IRS sent the check to the address from the 2018 return.
4) The intersection of 2) and 3) meant the Post Office returned the check!

During the call, I was able to update our mailing address (for 2018, because It's already here otherwise) and get a new check cut.  A notice about this whole mess came about 3 weeks later, asking for an updated address.  I ignored that, because it was taken care of.

 Moral of the story:  your case may vary,  but the wheels of justice turn slowly.  Follow the linked instructions to minimize your wait time, and see what you can do about it,

Loren Ver

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Re: ACA refund not received, action needed?
« Reply #2 on: November 26, 2021, 07:56:26 PM »
Thank you for the reply and sharing what worked for you. 

I'll see if I can apply this to my situation, hopefully it is just a simple hiccup.

secondcor521

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Re: ACA refund not received, action needed?
« Reply #3 on: November 27, 2021, 12:49:03 AM »
My other concern is this money has tax implications during the year I receive it, and it is not a small amount, so having it roll out the last week of December isn't great for planning purposes.   

I can't think of or imagine a situation where a 2020 refund of the kind you describe would have a tax implication for 2021.  The only implication of any similar sort I can imagine would be if you had applied a refund from 2020 to your tax liability for 2021, and you're clearly not doing that.

You'll still want to track down the money, of course.  For now I'd personally try calling and/or visiting your nearest IRS office.  You could start down the route of raising a ruckus with the IRS taxpayer advocate, or your congressperson, or the CFPB, but I'm not sure how long to give it to work out naturally before starting to express disappointment.

jpdx

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Re: ACA refund not received, action needed?
« Reply #4 on: November 27, 2021, 01:07:25 AM »
I'm still waiting for a refund for an amended 2020 return which the IRS shows as "completed" on Sept 10th.