The Internal Revenue Service (IRS) has issued advice on avoiding delays to tax refunds as the filing season deadline approaches next month.
Tax returns for 2023 are due across the U.S. on April 15, 2024. The IRS put out new advice on avoiding the “typical errors” that can hinder the timely payment of refunds for excess amounts paid and any tax credit refunds.
If there are no issues with your tax return this year, filers can expect to wait up to 21 days for any refunds if they filed online. However, filing via mail or with amended returns means that the process can take four weeks or longer for your refund to become available. The IRS warns the process can take even longer than this if your tax return requires corrections or additional reviewing.
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How Can I Avoid a Late Refund?
Use Electronic Filing
Electronic filing, using the IRS Direct File, Free File or an alternative e-service provider, is the easiest way to file your return, the IRS has said, as ” electronic filing minimizes mathematical errors and identifies potential tax credits or deductions for which the taxpayer qualifies.”
Whatever the filing method used, the IRS has said it is essential that returns are carefully reviewed.
Ensure Filing Status Is Correct
If you are unsure of your filing status or have multiple statuses, the IRS advises using its interactive tax assistant.
Make sure names, birthdates and Social Security numbers are correct – names, dates of birth and Social Security numbers must be entered exactly as they are on a person’s Social Security card.
Answer the Digital Assets Question
Those filing Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120 and 1120S must check one box answering either “yes” or “no” to the digital asset question. The IRS reminds filers they are required to report all income related to digital asset transactions.
Report All Taxable Income
The IRS has said that most income is subject to taxation, and any failures to report income streams can result in penalties and interest.
Make sure bank routing and account numbers are correct. If selecting direct deposit as the way to receive your refund, filers should ensure that any account details registered are up to date.
Remember to Sign and Date the Return
Single filers returning their taxes online can electronically sign their returns by inputting their adjusted gross income from the year prior. Joint returns filed by married couples must be signed and dated by both parties.
Ensure Address Is Correct If Mailing Paper Returns
While electronic filing is advised, those who file by paper are urged to check their mailing address to prevent delays.
According to the IRS, millions of people are still filing using paper, with around 24 million individual and estate and trust income tax returns completed via paper filings in 2022. In the same year, 153 million returns were filed electronically.
Keep a Copy of the Tax Return
A signed copy of your tax return should be kept on record, particularly in case a return needs to be amended. The IRS advises that “taxpayers should retain records supporting income, deductions or credits claimed on their tax return until the period of limitations for that specific tax return expires.
Request an Extension, If Needed
If you are unable to complete your returns prior to the April 15 deadline, the IRS urges taxpayers to request an extension, valid until October 15, to avoid late filing penalties. Even if an extension is approved, tax payments are still due on April 15 for the majority.
Newsweek contacted the IRS for additional comment via email outside of normal working hours.
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