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Common Myths about Federal Tax Refunds

by administrator

August 3, 2021

With the tax deadline now in the past, the IRS reminds taxpayers that there is no faster way to get a refund and to be patient while they process recently filed returns. Taxpayers who have already filed their federal tax return should have received their tax refund. Those who have yet to receive their refund should be aware that there is no faster way to get it. When it comes to tax refunds, here are a few common myths that individuals should know.

Before looking at common myths about refunds, taxpayers will need to understand a few key facts about the refund process:

  • Taxpayers who choose to file electronically and use direct deposit can expect their refund faster than those who mail a paper return.
  • Taxpayers who file a paper tax return are likely to face processing and refund delays.
  • The best and easiest way to check on a refund is Where’s My Refund?
  • The Where’s My Refund? tool available on IRS.gov and the IRS2Go mobile app.
  • A tax refund’s status can be checked within 24 hours after the taxpayer receives the e-file acceptance notification.

Here are a few common myths taxpayers should be on the lookout for:

Individuals who received a refund will most likely not need to adjust their withholding. However, if a taxpayer has experienced a change in income, they should review their current withholding and adjust it accordingly to ensure that they do not have to experience any tax time surprises for the next tax season.

Attempting to call the IRS or tax professional

Taxpayers should be aware that contacting an IRS agent or tax professional will not expedite their refund process and they will not receive any “special” information.

Utilize the Where’s my Refund? tool to track your refund

The Where’s My Refund? tool on the IRS website allows individuals to track the status of their refund. The tool will allow people to review whether or not their return is processing. Taxpayers should be aware that some tax returns may take longer to process if it requires further review. This includes:

  • Errors.
  • The return is incomplete.
  • Is affected by identity theft or fraud.
  • Includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process.

Your tax refund is less than expected

There are many reasons as to why a tax refund may be different than expected including:

  • Includes errors.
  • Is incomplete.
  • Is affected by identity theft or fraud.
  • Includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process.

If your refund amount is less than expected, the IRS will mail a notice explaining why the adjustments were made. Some taxpayers may even receive a letter from the Department of Treasury’s Bureau of the Fiscal Service if their refund was reduced to offset certain financial obligations.

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

Original Article

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