Taxpayers throughout the United States are preparing to meet the IRS tax return deadline of April 15, 2024. To aid in this annual fiscal responsibility, the IRS has dispensed valuable recommendations to circumvent the delays frequently associated with tax refunds.
Following this guidance is expected to expedite the refund processing period, which typically takes up to 21 days for electronic filers without issues. Conversely, those filing paper returns or requiring amendments may experience a longer wait, frequently exceeding four weeks. The IRS has pinpointed specific errors contributing to these hold-ups and offers solutions to streamline the process.
Switch to Electronic Filing
First and foremost, the IRS suggests using electronic platforms such as IRS Direct File, Free File, or any number of alternate e-service providers. This approach is heralded not only for its convenience but also for its efficiency. Electronic filings are less susceptible to the mathematical miscalculations that derail a paper return and are better at catching potential tax credits or deductions for which taxpayers may qualify.
Verify Filing Status and Personal Details
A correct filing status is one of the linchpins of a valid tax return. The IRS advises those unsure of their status- or those with multiple to choose from- to utilize its interactive tax assistant for confirmation. The importance of matching personal information, like names, dates of birth, and Social Security numbers, exactly to the details on one's Social Security card is also stressed. Such precision precludes processing delays.
Disclose All Transactions in Digital Assets
With digital assets under stringent scrutiny, filers using Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, and 1120S must check "yes" or "no" to a question about digital asset transactions. The IRS requires a full report on digital asset income to avoid penalties and prevent interest on unreported income.
Ensure Accurate Bank Information for Direct Deposit
Correct banking information is non-negotiable for those choosing direct deposit for their refunds- an option that promises more swift delivery. Updated and accurate routing and account numbers must be provided, as any errors could cause frustrating delays in receiving refunds.
Authenticate the Return with a Signature and Date
Completing a tax return involves an essential final step: signature and date. An e-signature can be created for single filers using the prior year's adjusted gross income. Married couples filing jointly need both individuals to sign and date the return. For traditional paper filers, ensuring the IRS has the correct mailing address is fundamental to preventing processing postponements.
Despite the push for electronic filing to reduce error rates and delays, paper returns remain a choice for some taxpayers. The IRS data from 2022 shows that while 153 million returns were submitted electronically, there were still about 24 million individual and estate and trust income tax returns processed via paper.
What If You Miss The Deadline?
Taxpayers need to keep a signed copy of their tax return. This is important if an amendment is required. Records for income, deductions, or credits must also be saved. These should be kept until the tax year's statute of limitations expires.
The IRS allows an extension request for those tethered by unforeseen circumstances or needing additional time to prepare their returns. This measure will enable filing until October 15. However, it is crucial to acknowledge that while the extension permits more time to file, it does not extend the deadline for tax payments due, which remains fixed at April 15.
The IRS has laid a clear roadmap to furnish tax returns expediently. These five tips, if followed, are projected to enhance the speed of the return process and help taxpayers surge past the tax season's rush before the April 15 deadline. They are an indispensable checklist for punctuating and navigating tax season's intricate landscape.
