6 Common Reasons Your Form 8849 Refund Is Delayed

1. New EIN: Any new Employer Identification Number (EIN) assignment which you received will require the IRS to update its systems before your Form 8849 submission can receive approval. You should allow a minimum of two weeks before filing a claim with a new EIN.

2. Inaccurate Vehicle Identification Number (VIN): The refund claim will face delays if the submitted VIN number does not match the correct vehicle identification number(in the case of Form 8849 Schedule 6) The VIN needs verification because it serves as essential data for your claim submission.

3. Business Name and Other Details: The IRS will reject your refund request if your Form 8849 contains business name and address details that do not match IRS records. The information needs to be verified because it must match IRS records with complete accuracy. 

4. Wrong Tax Amount Being Claimed: The most common tax-related issues occur when people incorrectly report their taxes by either claiming too high or too low tax amounts. You need to find and report your accurate tax amount because any tax discrepancies will cause processing delays or result in your application being denied.

5. Minimum Claim Amounts: Certain claims necessitate a minimum refund amount in order to be processed. For instance, you need to claim at least $200 for some excise taxes, otherwise, your refund will not be processed.

Speed of Processing:

Manually claiming a refund may take several months or even years, and sometimes, the refunds might not be issued at all. However, an electronic filing serves as a guarantee that you will get your Form 8849 Schedule (2, 3, 8) within 20 days and Form 8849 Schedule (1, 5, 6) within 45 days from the date of the IRS acceptance.

Tracking Your Claim:

You can easily check the status of your refund online via electronic filing. It brings you some reassurance and keeps you informed about the progress of your claim.

Conclusion

To sum up, several factors can cause a delay in the refund of your Form 8849. The good news is that filing electronically is the answer to all your concerns. Besides faster processing, errors can also be minimized when you opt for the Online filing method. What's more, you can go smarter and choose Simple720, an IRS-Authorized online portal.