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Tuesday, January 19 2021

The IRS claims to issue most refunds in fewer than 21 days, and hopefully, that will hold true in the 2021 tax season, too. The IRS will begin receiving returns from early filers and filing systems on February 12 and expects nine out of 10 taxpayers to receive their refund within 21 days if they file electronically with direct deposit and have no issues in their return.

Unfortunately, the coronavirus crisis may extend the amount of time it takes to receive your refund. To reduce any potential refund delays, consider preparing tax returns—or working with a professional or tax filing software to prepare them—as early as possible. That way, as soon as the IRS begins accepting returns, yours can be submitted and your refund can be processed, hopefully within that 21-day window. The IRS also recommends that taxpayers file their returns electronically to reduce any potential errors and receive refunds more quickly. Use the commonly overlooked tax deductions checklist to check for any opportunities to increase your 2020 tax refund, and plan to be patient: That refund will arrive eventually.

Posted by: AT 10:29 pm   |  Permalink   |  Email
Monday, January 06 2020

WASHINGTON ― The Internal Revenue Service confirmed that the nation's tax season will start for individual tax return filers on Monday, January 27, 2020, when the tax agency will begin accepting and processing 2019 tax year returns.

The deadline to file 2019 tax returns and pay any tax owed is Wednesday, April 15, 2020. More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline.

"As we enter the filing season, taxpayers should know that the dedicated workforce of the IRS stands ready to help," said IRS Commissioner Chuck Rettig. "We encourage taxpayers to plan ahead and use the tools and information available on IRS.gov. The IRS and the nation's tax community are committed to making this another smooth filing season.

The IRS set the January 27 opening date to ensure the security and readiness of key tax processing systems and to address the potential impact of recent tax legislation on 2019 tax returns.

While taxpayers may prepare returns through the IRS' Free File program as well as many tax software companies and tax professionals before the start date, processing of those returns will begin after IRS systems open later this month.

"The IRS encourages everyone to consider filing electronically and choosing direct deposit," Rettig said. "It's fast, accurate and the best way to get your refund as quickly as possible."

Filing electronically flags common errors and prompts taxpayers for missing information. Taxpayers can get free help preparing and filing taxes through IRS Free File online or free tax help from trained volunteers at community sites around the country. The IRS also reminds taxpayers that they don't have to wait until January 27 to start their tax return or contact a reputable tax preparer.

Where's My Refund? ‎on IRS.gov and the IRS2Go mobile app will be updated February 10 for the vast majority of early filers who claimed the Earned Income Tax Credit or the Additional Child Tax Credit. These taxpayers will not see a refund date on Where's My Refund? or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund. Where’s My Refund? is only updated once daily, usually overnight, so checking it more often will not produce new or different results.

Why is my refund being held?

If you claim the EITC or ACTC on your tax return, the IRS cannot issue your refund before mid-February. The law requires the IRS to hold the entire refund — even the portion not associated with the EITC or ACTC. Like previous years, some tax refunds may be held if there are questions about the tax return or the IRS needs more information.

When will I get my refund?

The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or debit cards starting February 10, 2020, if these taxpayers chose direct deposit and there are no other issues with their tax return.

Why does it take so long for the funds to show up in my account?

It takes additional time for refunds to be processed after leaving the IRS, and for financial institutions to accept and deposit them to bank accounts and products like debit cards. Also many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving President’s Day affects their refund timing.

How do I check the status of my refund?

Where's My Refund ‎on IRS.gov and the IRS2Go mobile app remains the best way to check the status of a refund. Where’s My Refund will be updated with projected deposit dates for most early EITC and ACTC refund filers on February 10 so those filers will not see a refund date on Where's My Refund ‎or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so these filers should not contact or call about refunds before the end of February.

Posted by: Fisay Global MGT AT 08:16 pm   |  Permalink   |  0 Comments  |  Email
 

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