As a taxpayer, you may suffer from a tax refund delay for many reasons. These include computational errors, incomplete tax returns, and incorrect deposit information. You may also observe refund delays in case of social security number mismatches, early or late tax filing returns, and tax return amendments.
However, there are ways you can avoid these delays. Here are just a few:
-
Keep copies of your prior tax records
Inaccuracies and incomplete information in returns cause many tax refund delays. Having and using information from prior years tax returns can help you minimize these as much as you can. Ideally, you should maintain copies of your prior tax records for at least three years.
-
Top 3 Tax Frauds
The IRS is carefully screening tax returns with an eye towards preventing fraud. There are three things they look at: earned income tax credit, child tax credit, and the American Opportunity Tax credit. When you file, there are due diligence questions that must all be answered.
If your return has any of these items, your return may be delayed because it’s under review.
-
Be well prepared
If you’re not well prepared to file your tax return, this will delay the filing of your taxes. Which will, in turn, delay when you receive your refund. You should strive to create a file of all necessary tax forms, such as W-2s, 1099s, and other mandatory forms. You should receive these from the related institutions and banks throughout the month of January.
If you have not received all the forms you need to file your taxes accurately and completely, you can attempt contacting your employers or the related institutions.
In addition, the IRS requires you to indicate whether you had an individual health insurance plan throughout the course of the year. You are also required to indicate if you qualify for an exemption or have received the premium tax credit.
-
E-filing
You can minimize the amount and extent of computing errors on your tax returns by electronically filing your taxes. Keep in mind that more than 90 percent of all tax returns are filed electronically nowadays, by using either tax software or a tax professional.
It is much easier for the e-filing software to spot and check for errors. Whereas paper returns may increase the likelihood of mistakes. Most tax professionals are required to file electronically.
-
Direct Deposit
You also have the option of having your refund check deposited directly into the bank account of your choice. This reduces the chances of your refund check getting lost, stolen, or undeliverable. However, you must double-check your bank’s routing number and account number to make sure your refund isn’t deposited in the wrong account.
Want to make taxes easier?
Contact us for a free consultation.
Sources:
-
“Get Ready for Taxes: Plan Ahead for 2018 Filing Season to Avoid Refund Delays.” Internal Revenue Service. Accessed April 01, 2018. https://www.irs.gov/newsroom/get-ready-for-taxes-plan-ahead-for-2018-filing-season-to-avoid-refund-delays.