The "flag" is the EV credit. The selection process appears to be random. My refund is under $10k, so there goes that theory. Just because there are three people on this forum whose returns are being "investigated" doesn't mean that the process isn't random. My return is very simple: standard deduction, no Schedule C, etc. My tax lawyer friend told me that there have been cases of fraudulent claims for the EV credit in the past few years and that the IRS apparently decided to take a closer look at a sample. While it's infuriating to endure the long delay, we can probably blame the House Republicans for cutting the IRS budget for that.GaslessInSeattle wrote:It sounds like it's not so random. our refund status on the IRS web site has been "Your tax return has been received and is being processed" for many months. We filed in early February and it's getting kind of nerve wracking. It appears that a few things could be adding to the delay. Our tax person has called and found that they are "investigating" the claim and that the main red flag is the EV credit. Our accountant told us we are in IRS limbo land, where it takes many weeks, sometimes months to get shuffled around. From the talk she had with an IRS rep last week, we will likely have to come up with the invoice and prove we actually bought the car but won't even be given the chance till 30 days passes from the time the investigation started or something like that. I have never had such a large return as we have better planned withholdings in the past. In hind sight, our accountant suggests trying to avoid ever having a refund over $10,000, as it automatically flags your account.
for folks buying this year, I would consider claiming more exemptions as you go if you can to keep the actual refund from being large... at the very least, you won't be wringing your hands for months waiting for a big refund check.
oakwcj wrote:I don't think it's quite that ominous. The IRS randomly selects some returns claiming certain large tax credits. They go to the "examination" -- not the "investigation" -- department to be looked at by an "examiner." The only problem I have with the process is that it is taking way too much time.mwalsh wrote:I don't know about that, but I do know that the IRS is sitting on my tax return for this year. I've had private discussion with someone else in the same situation and who has contacted them - he's waiting on "an investigator" being assigned to his "case"!