It’s crucial to note that processing time normally slows down when the tax season gets begun and the IRS processes more returns, the publication stated.
In the interim, tax experts say there are some things that taxpayers can do to assist secure a timely tax refund, which is especially more crucial this year given that the IRS is starting with a backlog.
“The first thing you know if you are going to make a dinner, you have to have the kitchen cleaned up from the last meal,” stated Mark W. Everson, vice chairman of Alliantgroup and former Commissioner of the IRS. “It basically snowballs into a catastrophic situation.”
How to receive a tax refund within 21 days of filing is the subject of advice from tax experts and the Internal Revenue Service (IRS).
Initiate electronic filing
This is a recommendation from the IRS this year. Taxpayers who choose to file electronically are more likely to have their taxes processed more promptly than those who file paper forms, according to the agency.
Why? Because electronic returns are processed by a computer system rather than by human staff at the IRS. Early on in the pandemic, the IRS closed its offices and employees ceased opening mail, delaying the processing of paper returns.
Direct deposit is the preferred method for receiving a refund.
Refunds should be deposited directly into taxpayers’ bank accounts, according to the IRS. In order to obtain your money as quickly as possible, the agency recommends combining e-filing with direct deposit to your bank account.
87 million people chose direct deposit to get their refunds last year, out of the 95 million people who received them. According to the IRS, most taxpayers who file electronically and choose direct deposit will get their refunds within 21 days if there are no issues with the return.
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Don’t make an educated guess
On tax returns, the IRS compares its data to that provided by taxpayers. Returns that have inconsistencies, such as claiming $58,000 in income on your W2 but reporting $60k, are highlighted for manual examination by an employee.
You should expect your tax return to be delayed by many weeks or even months if that happens. This is why tax professionals encourage taxpayers to double-check their forms to be sure they’re reporting data correctly. According to Cyr, “word of mouth or the honour system” should not be relied upon when filling out one’s tax returns. “I can assure you that this will result in a lag.”
Keep IRS and CTC correspondence about stimulus.
Additionally, the Internal Revenue Service (IRS) is mailing letters to individuals who will get the third federal stimulus check in 2021, in addition to those who will receive the advanced Child Tax Credit instalments.
You should keep these letters because you’ll need them when filing your tax return in 2021 to see how much money you received as a result of these initiatives.
Some taxpayers received inaccurate CTC letters, and thus the IRS is encouraging them to check the amount they received by entering into their IRS.gov accounts.
Taxpayers will receive two letters:
- Letter 6419, which informs them of their CTC advance payments. After starting the process in December, the agency plans to continue it in January.
- Letter 6475 — on the third stimulus payment. After the end of January, that letter will be sent out.
When you file your taxes, tax professionals recommend that you keep both of these letters.