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Posted on March 11, 2019 in Firm News
With filing season upon us, millions of taxpayers are anxiously awaiting their refund. Some will be coming in the mailbox while the faster route is to receive it directly deposited into your bank account. That lump of cash has to be the best part about filing your taxes!
After filings, taxpayers anxiously watch the clock: When will it get here?! I have anew television I want to get or a trip to book! Unfortunately, there are some factors that contribute to the delayed payment of refunds.
First,state tax security delays can trip up the process. These can be chalked up to safety and identity concerns. Many states often publish any anticipated refund delays informing taxpayers about refund fraud. Because of that, the new standard procedure is that some states don’t begin processing refunds until March. This is because states can’t afford to lose millions of dollars by sending refunds to fraudsters and to the taxpayer who deserves it.
There also may be an issue with your federal return. Sometimes the IRS identifies an inconsistency and has to get in touch with you to reconcile the problem.Remember, though, the IRS will not call you over the phone and threaten to send you to prison. These issues are addressed by regular U.S. mail. In order to minimize any opportunity for inconsistencies, we recommend that you use a qualified tax return preparer. Because the IRS cannot send our your refund until the issue is resolved, it is always better to address them sooner rather than later.
Finally,there may be a matter of refundable credits. A taxpayer with refundable credit may still receive a refund even if they didn’t overpay in taxes. These are based on many financial or social factors such as earned income or family size.
Unfortunately,these credits are a target for fraudsters, especially in the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) areas. Because of this, these credits on a return draw closer scrutiny.
To cut down on fraudulent returns, the PATH Act was passed in 2015 to require those returns claiming suspect credits be held an extra few weeks for additional review.