Tax refunds are beginning to trickle out, but system issues may delay yours.
According to the IRS, if you are one to receive a refund from your 2019 taxes, you may be waiting longer than usual. The IRS has taken extra security precautions this year to reduce the number of counterfeit refunds.
Those that have yet to file their taxes can find a select bunch, to see the process go over as smoothly, and efficiently, as possible.
Early filers are just beginning to receive their refunds. Those that did not file as quickly, could still be waiting for weeks.
Last year, the IRS estimated it paid out $1.3 billion in fraudulent refunds. The reason, criminals look to file early and claim an individual’s refund.
If you are a victim of identity theft, the IRS will still honor your refund and you can still receive it. The process, however, is a tedious one that could take months.
Piles of paperwork are required to verify who you are. Once it is approved, you can still receive your appropriate refund. Yet, the government is now out twice of your refund.
This is one of the reasons refunds are delayed.
The IRS is looking for multiple refunds filed for the same individuals. They hope to alleviate the financial strain of over a billion in false refunds.
Not only do the masked criminals delay the process, but President Donald Trump’s Tax Reform has also slowed the season of refunds.
Tax code changes have required a plethora of new software. The required software for agencies has changed drastically each year, and for those that haven’t received the updates, they cannot file your taxes.
System changes, plus the lack of contractors put a severe strain on staffed IRS agents to approve and process refunds.
While all tax refunds will be delayed, some tax credits could see a longer hold.
Due to partial refunds being nonexistent, certain credits will hold up the release of a refund. Specifically, the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) will be delayed since they are the most common credits criminals target.
This will result in lower and moderate-income families seeing a hold possibly placed upon their refund status.
Although the delay is inevitable, and a hold may prove inconvenient, tax credits remain a way to alleviate money owed and possibly, see a refund come your way.
The IRS has always recommended filing as early as possible. This, among other tips, will see those that have waited, a smoother experience.
Be sure to have documents gathered and organized. If you do not know if a document is required, it is better to heed upon the side of caution.
File electronically. Many tools and sources are also available online. Having a reliable and convenient way to file such as a computer can reduce stress tremendously. Be sure to report all income, file for direct deposit of your refund, and utilize IRS.gov. Not only are these tips suggested, but the IRS states some taxpayers are eligible for free filing.
Both Federal and State can be filed freely if one’s adjusted gross income was $69,000 or less in 2019. To see if you are eligible, go to IRS.gov.
If you are looking for some help filing, a local source may prove invaluable. The Potter’s House Ministries is offering free federal and state tax filing by appointment or walk-in.
Located in Portsmouth, those that are looking for an extra bit of help can visit them on Winchester Avenue or call them at (740) 776-4004.
The tax season is upon us, and although delays may incumber any possible refunds. The IRS and other outlets have multiple sources to alleviate your worries of tax days.
Reach Bailey Watts (740) 353-3101 Ext 1931
© 2020 Portsmouth Daily Times, all rights