There has been a lot of discussion about the issues that the IRS is having with their backlog of work and staffing. Although they have started processing returns, they are warning people that it is going to be a rocky season. So anything that taxpayers can do to help themselves will made their lives easier and get their refunds in the quickest way possible.
WHAT CAN PEOPLE DO?
- Biggest thing by far is to make sure your returns are accurate. Don’t file it until you make sure that all your information has been received.
- This means waiting for the IRS letters on how much of a stimulus check you received as well as your advanced child care credit. We talked about this a couple weeks ago.
- The IRS has said that they will reconcile these amounts to the tax returns filed and make changes where necessary, but it will delay any refunds that people are expecting.
ANY IDEAS ON HOW FAST REFUNDS WILL COME?
- In the past, a return filed on a Wednesday could have the refund deposited by the following Friday. I think those were the good old days.
- I would say refunds will be issued somewhere between two to three weeks after the return is filed.
- As always, the taxpayer can go onto the IRS or their state website to check the status of their refunds.
- I would not try to call the IRS to check on their refund as the wait times are very long and I think they are only able to answer somewhere around 25% of the calls that come in.
I ASSUME THE TWO TO THREE WEEKS IS FOR E-FILED RETURNS?
- Yes for sure.
- Paper returns will take a lot longer. The return itself may take 8-12 weeks plus to process.
- There are many 2020 paper filed returns that have not yet been processed, so the 8-12 week number may be generous.
AND I AM SURE A PAPER REFUND CHECK WILL SLOW THE PROCESS DOWN ALSO?
- Last week, we talked about paying any taxes due electronically.
- We also strongly recommend direct deposit of any refunds.
- This will make the refunds come a lot quicker. If the IRS has to process a paper check it will definitely slow down the process.
OK SO THE STEPS TO GET YOUR REFUND IN THE FASTEST TIME FRAM POSSIBLE IS TO
- MAKE SURE IT IS ACCURATE
- USE E-FILE
- HAVE THE REFUND DIRECT DEPOSITED
Be sure to talk to a tax professional if you have any questions about filing electronically and direct deposit of refunds.
As a partner, I have thorough experience providing tax services to individuals, privately held businesses, nonprofit entities and estates and trusts. I also provide compilation and review services.
