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You can begin submitting particular person revenue tax returns on Jan. 24, however there may be refund delays because the IRS combats a backlog and restricted staffing, in accordance with Treasury officers.
Nonetheless, there could also be methods to get your cash quicker, monetary specialists say.
Though refunds are sometimes despatched inside 21 days, many filers waited longer last year, and the IRS nonetheless hadn’t processed millions of submitted individual returns on the finish of December.
“These numbers are simply alarming,” mentioned licensed monetary planner Larry Harris, director of tax companies at Parsec Monetary in Asheville, North Carolina.
Whereas electronic filing with direct deposit is a perennial tip, listed here are another methods to hurry up your 2021 refund, in accordance with tax specialists.
One of many best methods to keep away from refund delays is double-checking your return, specialists say.
“Half of the issues are from taxpayers not offering correct info,” mentioned Eric Pierre, an Austin, Texas-based licensed public accountant, proprietor of Pierre Accounting and co-host of the CPA Huddle podcast. “The IRS is a sizzling mess, however you are not serving to your self with errors.”
The backlog of unprocessed returns consists of points triggering a guide overview, according to the IRS, together with many stimulus verify errors, and the company is fixing “considerably extra errors” than in earlier years.
There could also be comparable points because the IRS tries to reconcile the 2021 stimulus verify and advance little one tax credit score funds, Harris mentioned.
“I’ve issues it may create one other vital backlog along with the backlog that already exists,” he mentioned.
If these letters match your return, it is much less prone to get marked for overview and delay your refund, Harris mentioned.
The identical goes for quarterly estimated funds and different tax varieties, corresponding to your W-2 for revenue or 1099-R for retirement plan withdrawals. In the event you’re lacking paperwork, you possibly can download a free IRS transcript to confirm varieties or verify numbers from final yr’s return.
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One other concern which will trigger tax refund delays is getting flagged for identity theft.
The IRS marked 5.2 million refunds for fraud in 2020, according to the Taxpayer Advocate Service, with 1.9 million stopped for identification screening.
If the IRS suspects fraud, they are going to mail Letter 5071C or 6331C, halting the return till getting a response. And the method takes longer if it goes to the unsuitable deal with, Pierre defined.
“Lots of people make errors keying of their condo quantity or overlook they’ve moved lately,” he mentioned. “And mail forwarding would not at all times catch stuff.”
Nonetheless, you possibly can keep away from prolonged delays by guaranteeing the IRS has your up-to-date contact information.
After getting the letter, you could verify your identity online, by calling the quantity offered or visiting an area IRS workplace. However reaching the IRS is probably not simple.
There have been fewer than 15,000 staff to deal with the 240 million incoming calls in the course of the first half of 2021 — one particular person for each 16,000 calls — in accordance with Treasury officers.