Millions of U.S. Tax Returns in ‘Purgatory,’ Delaying Refunds

May 12, 2021, 4:54 PM

Almost 9 million individual returns are in being held in IRS “purgatory” because they potentially contain errors, an official from the IRS’s Taxpayer Advocate Service said Wednesday.

An agency employee has to review the returns, which have been flagged by the IRS’s Error Resolution System, Deputy National Taxpayer Advocate Bridget Roberts said at a virtual conference hosted by the American Bar Association’s tax section. That system “has more returns than it can handle right now,” she said, meaning many filings are in “suspense” until the IRS can get to them.

  • A lot of the returns are getting pulled ...

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