Every year, millions of taxpayers across the U.S. eagerly await their tax refunds from the IRS. Unfortunately, sometimes those refunds can be delayed. If you’re expecting a tax refund this year, there’s a chance it could be delayed. As a matter of fact, delays have become more and more common in recent years. Sometimes, the reasons fall outside of a taxpayer’s control. But in some cases, delays are entirely the consequences of the taxpayer’s mistakes. In either case, understanding why a tax refund could be delayed is key to ensuring that your return is processed as quickly and efficiently as possible. Here are four of the biggest reasons why your tax refund could be delayed.
Incorrect or Incomplete Information on Your Tax Return
If you make a mistake, even a small one, when filing your taxes, it can lead to major delays in processing your return and receiving your refund. The most common errors involve incorrect Social Security numbers or other identifying information, such as an address change. In addition, failing to include all required forms or documents with your tax return can also cause delays. It’s important to double-check all of your information before submitting your return. Without complete and accurate information, the IRS may reject your return and ask you for more information.
Errors in Your Tax Return That Triggers an Audit
If the IRS finds errors or discrepancies on your tax return, they may choose to audit you. An audit can take months, even years, and it may not be finalized until after your refund has already been issued. The best way to avoid an audit is to be accurate and thorough when filing your taxes. On top of that, it’s more than important to respond quickly and accurately to any inquiries from the IRS regarding your return. Sometimes, the IRS will ask for additional information, and if you don’t provide it, your return could be delayed.
Identity Theft and Refund Fraud
Unfortunately, identity theft and refund fraud are becoming increasingly common problems throughout the United States. If the IRS suspects someone has stolen your identity to file a fraudulent tax return in your name, they will likely delay your refund until they can investigate the issue. This process can take months, so monitoring your credit report and being on the lookout for any suspicious activity can prevent it from happening. You can also try to reduce your risk of identity theft by shredding documents that contain personal information and regularly monitoring your bank accounts.
By understanding the potential issues that could delay your tax refund, you can take steps to ensure a smooth and speedy submission process. Make sure to double-check your information before filing, respond quickly and accurately to any inquiries from the IRS, and take steps to protect yourself from identity theft. Following these tips will help ensure that your refund arrives as quickly as possible.