Waiting for Your Refund? Settle In For a Longer Wait than Usual

About 142 million taxpayers in America filed their tax returns on July 3 or earlier, but the pandemic has caused trouble with Internal Revenue Service (IRS) processing, just as the pandemic has created chaos for most of our economy in the last five months. Compared to the same time last year, the IRS has processed about 10 percent fewer returns.  

What does that mean for you – delays. It does not mean that you’ll never get your refund, it just means that there’s going to be a bit of wait because of the IRS backlog. The problem is that many of us rely on our tax refund to pay bills, and the average refund in the U.S. is in the range of about $2,800.  

In this article, we are going to discuss the IRS issues with your tax refund, and cover some strategies on how you can expedite your own refund, now or in the future. If, after reading this article, you would like to have additional information about how to deal with taxes as a freelancer or independent contractor, we invite you to call the business tax lawyer of Florida , Mary E. King, P.L. The Law Office of Mary E. King , P.L. can make sure that your tax issues are resolved efficiently and at the lowest cost to you. Please fill out our online contact form , or call us at 941-906-7585 today.

All reports indicate that the IRS has a huge backlog this year. The later filing deadline – from April 15 to July 15 – did not quite help the problem. In fact, it might have exacerbated it because many people waited until the last minute this year, more than in previous years.  

Thus, the backlog, in and of itself is a driver of slower refunds this year. Yet, there are two other issues that will result in slower refunds as well.

First, if you filed on paper and are expecting a refund, then you may be in for a long wait. Although the commissioner of the IRS recently told the Senate Finance Committee that the IRS has made the processing of paper returns a high priority, it appears that the IRS is finding itself behind the eight-ball on getting the paper returns processed.  

If you have filed a paper return, the best advice is just to sit tight.  Paper refunds are being processed in the order they are received, according to the IRS website . In fact, the IRS has made it clear that it is “experiencing delays in processing paper tax returns due to limited staffing.”

The one thing you should not do is file a second tax return. That would most certainly confuse things further. In addition, the IRS is urging taxpayers not to call the IRS. While that is a strange bit of bad customer service, the message there is that calling the IRS will not get you anywhere, and it will not speed up the processing of your particular paper return, unfortunately.

Second, another reason for a delayed refund could be because your return may have been mistakenly flagged by tools that are trying to detect fraud.  Fraud filters are typically wrong more than half the time, but if a return gets flagged, then the IRS might stop processing (or not even begin processing) and ask the taxpayer for more documentation. It appears, according to the New York Times that delays seemed to affect people who claimed the earned-income tax credit or the additional child tax credit, both of which are focused on helping low- to moderate-income filers.    

First, the bad news:  For this tax year, if you have already filed your return, then there is really little you can do to speed up the process, particularly if you filed a paper return. The IRS is so backlogged, that it is, as noted, encouraging people not to call the IRS.  

Next, the good news:  Here are a few tips for getting your tax refund as quickly as possible in the future .  

1. File early .  When you have all of your tax documents ready to go, file as soon as possible. The phrase “the early bird gets the worm” applies here. The faster you file, the faster you will get your refund.

2. Avoid paper .  Make the switch to filing electronically. The six-to-eight-week processing time for paper returns gets cut down to days when you file electronically – you can expect a refund 21 days after filing electronically.

3. Use direct deposit .  You can get your refund check even faster if it is directly deposited into your bank account rather than getting a check in the mail.  

Finally, if you do end up having issues with the IRS beyond a slow refund, or if you are the target of an audit – then you need to contact a seasoned tax refund attorney in Florida.   

Taxes can be a challenge for individuals, businesses, and freelancers because there is so much to manage. And there is always the chance that you could wind up an IRS target for an audit.  

In the event of an audit, you need to talk to a business tax lawyer in Florida who can help. Mary E. King has spent her career concentrating on tax law and can help you with tax audits in Florida and elsewhere. Attorney King has a wealth of information about what types of options would make the most sense for you and your business.

That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax attorney of Florida, is the first step you should take towards relief. The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses. Call us today to schedule an initial consultation. With years of experience as a tax attorney in Florida for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form , or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.