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The IRS, Tax refunds and You

The IRS, Tax Refunds and You

The IRS is being proactive by informing tax professionals and the general public of the following;

 

  1.      More than 90% of refunds are sent out in less than 21 days.
  2.     The fastest safest way to request a refund is by direct deposit.
  3.     The status of your refund will be available on the Where’s my Refund page of the IRS site.  (There is a link to the website on the Ednomics website:  http://ednomics.com/client-center ) within 24 hours after you return has been e-filed.
  4.     This IRS website is updated once every 24 hours.
  5.     There are 4 stages in the process shown on the site:
  6.     Return Received
  7.    Refund Approved
  8.     Refund sent
  9.    Contact us.  (In that case do call the IRS)
  10.     Calling the IRS will not speed up your refund
  11.     IRS agents can research the status of your refund only if it has been e-filed 21 or more days earlier.
  12.     Requesting a transcript of your return will not speed up the process.
  13.     The IRS urges you to use direct deposit but there is a limit of three refunds into one account in a year.
  14.     Verify the account number used in entered correctly

 

 

Amended Returns

You can expect an amended return to be process up to 16 weeks from the date the IRS receives the amended return

  1.    IRs personnel will not be able to answer questions while your amended return moves through processing.
  2.    I would recommend sending amended returns using

B Here is a link for checking on the status of an amended return:

 https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

 

 

 

A Different Route

 

I realize that most taxpayers currently seek a refund and are upset if they owe either the IRS or the state money. I have frequently seen tax refunds as the source of the annual vacation and many other items. 

 

But I would suggest something different.  In my opinion it would be better on planning to owe the IRS and the state money with your return.  I would suggest working with your tax professional to reasonably project your current year taxes and then making estimated and or withholding to hit the desired amount owed to each.  The savings for the annual family vacation, as an example, would instead be done with automatic payments to a savings account instead.

 

With identify theft with us not having a refund would allow some earnings on the funds set aside but also avoid a long delay in getting the refund if somebody did a dirty deed.  If someone has fraudulently files a return with your Social Security number, it takes on average a year to receive your refund.  The IRS has to initially assume that both the true return and the bad return are false.  It takes then time to verify who actually deserves the refund.

 

Better to save for your vacation fund (or whatever) another way and send a predetermined value check to the IRS and the state close to the deadline of April 15