The pandemic temporarily closed the IRS and officers are now returning to work. They have been confronted with a massive backlog of work. Americans got an extra three months this year to file their taxes, but this didn't benefit the millions of Americans who filed long before April 15th. The main delays are coming from the people that filed paper returns as there is a large backlog of these and the IRS is just now trying to dig themselves out from the hole.
This delay in refunds has a big ramification for many Americans. As of July 10, the average refund was $2,762. That money could go a long way towards helping someone meet rent or house payments this month. And as my previous blog post reported, 1/3 of Americans missed rent or housing payments in July. Also, it appears that the next stimulus bill will be less gratuitous than the first. This means many of the record-high unemployed will have less support financially. These tax returns could be the difference between losing a house or being evicted. Additionally, state eviction moratoriums have begun to expire around the nation and the federal one is set to expire this week. Hopefully the IRS will get these refunds back to Americans as soon as possible. Many Americans could use the refunds to avoid accumulating more harmful debt or use the money to avoid evictions and homelessness.