by FOX Business’ Lydia Hu talks to Toast Restaurant owner Amy Russo about the IRS’ proposed new plan to crack down on the service industry.
The Tax period 2023 is well underway, and the IRS has a request for Americans who want to get their refund faster: File your return online and as soon as possible.
There are some steps taxpayers can take to get their money back faster. Experts urged taxpayers to file their tax returns as soon as possible, noting that individuals do not need previous returns to file their 2022 returns.
Americans are encouraged to file electronically by direct deposit to avoid potential delays and receive their refund within 21 calendar days.
The headquarters of the Internal Revenue Service (IRS) in Washington, DC (AP Photo/J. David Ake, File/AP Newsroom)
People who wish to receive theirs refund from the IRS will have to take several steps to ensure a speedy refund, according to the tax collection agency. This includes submitting returns online, checking them for accuracy and completeness before submitting them, and applying to receive your refund via direct deposit.
Filers should do “everything they can” to file their returns electronically, according to Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals.
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“Filing a paper return would probably be the worst idea of all, even though the IRS has hired extra staff,” O’Saben told FOX Business. “They still have a backlog from last year. The difference would be measured in months, instead of weeks, if someone did a paper return instead of filing online.”
As of Feb. 18, the IRS said it had 2 million unprocessed individual returns. These include tax year 2022 returns, 2021 returns that need checking or correction, and overdue returns from a previous year. Of these, 1.79 million returns require error correction or other special handling and 206,000 are paper returns waiting to be examined and processed.
Income tax form 1040 and W-2 wage statement with federal refund check.
There are other methods to get a refund faster: O’Saben said taxpayers should request it receive the money through direct deposit, which he estimated could cut about 10 days off the return schedule.
One of the most important factors in getting your tax refund as soon as possible is to review your return before you file it and make sure there are no small mistakes that could cause the IRS to flag it for further scrutiny.
“One of the ways to make sure you get your refund as quickly as others is to make sure you have your ducks in a row,” O’Saben said. “Don’t ignore things the IRS catches on to very quickly.”
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For example, if you bought health insurance through the Affordable Care Act’s marketplace, you’ll have to reconcile your premium tax credit advances using tax Form 1095-A.
Filers should also double-check their Social Security numbers and make sure they match their last name. This goes doubly for newlyweds, who may have legally changed their last name but not yet for their social security number.
“That’s a big one,” O’Saben said.
The IRS says it could take more than 120 days to get your refund if they need more information or verification from you, depending on how quickly and accurately you respond and how quickly the IRS can finish processing your return your. In such cases, you will receive a letter from the IRS.
A blank Form 1040 tax return from the IRS. (iStock/iStock)
If taxpayers file a hassle-free online return and choose to receive their refund via direct deposit, the IRS expects the money to arrive within 21 days.
With inflation remaining uncomfortably high, a growing number of Americans are counting on their refunds this year: new research from Bankrate found that about 75% of adults who expect to receive a tax refund this year believe the money is important to their overall financial situation. Some 43% said the refund was “very important”, compared to 32% who described it as “somewhat important”.
But the IRS warned taxpayers to prepare for smaller refunds this year because there were no stimulus payments from the federal government in 2022. So far this year, the IRS said it has issued about 28 million refunds. This number is 26% higher than last year. The average refund amount was $3,140, down 11%.
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Tax season ends on Tuesday, April 18 this year.
Even if you get an extension from the IRS to file your taxes, you’ll still have to pay the money owed to Uncle Sam by April 18, or you’ll face penalties and interest on any unpaid amount.
Can you track your refund on Where’s MY Refund? or in IRS2Go on a mobile device.
