If you are planning to receive a tax refund, more than likely you want your return to be processed without any delays. However, if a tax return is not completed using a tax preparation service or tax accounting software, it may be more likely to be delayed. Here are a few avoidable reasons for a refund delay:
If any information is missing from your tax return, such as a social security number for a claimed dependent, your return will be delayed. In addition, missing forms can also delay your return.
In some cases, the IRS will send a letter requesting the information. Still, until the missing information is submitted, the processing of your return is paused. Even after faxing or mailing the requested data, you may still have to wait a few weeks before receiving your refund.
If you file your tax return after the filing deadline, your refund will likely be delayed.
Although it may seem strange, filing too early may also encourage a refund delay. Due to annual changes to the tax guidelines, the IRS may need time to update its software. Some updates may take a couple of weeks, and your return cannot be processed until the updates are complete.
Tax returns can be complicated due to the number of calculations required. If you prepare your own return manually, you may inadvertently add or subtract incorrectly. A small math error can change the amount of taxable income and can consequently affect other refund-related determinations, such as eligibility for earned income credit.
Using a tax preparation program on your computer can help ensure that all the calculations on your tax return are properly computed. Some preparation software even has error checks in place to help ensure that errors in computation are less likely. Preparation software can often be accessed online, downloaded or purchased on a disk.
Requesting a Check
Tax refunds that are issued via direct deposit are usually received more quickly than those that are issued by check. Still, it is important to ensure that your direct deposit information is correct. If the IRS attempts to directly deposit your refund and it is rejected by your bank, a paper check will be mailed to you.
To ensure that your return is prepared properly and to lessen your chance of a tax refund delay, schedule a consultation with a professional tax preparation service like Johnson & Associates, CPAs, P.S. in your area.