If your tax refund hasn’t arrived in your bank account yet, you’re not alone. Every year, many taxpayers face delays for various reasons. Here, we explain why this happens and how you can avoid it in the future.
Returns with Errors Can Cause Delays
The IRS uses an automated system to check for inconsistencies between the income you report and the data provided by your employer or financial institutions.
If there’s any mismatch, your refund may be delayed as it undergoes manual review.
How to Avoid This?
- Double-check all your forms and ensure the numbers match your employer’s records.
- Consider hiring a tax expert if your return involves complex credits or changes in data.
Child Tax Credit Review May Take Longer
If you’ve applied for the Child Tax Credit, expect some delays. Starting in 2024, the IRS has increased scrutiny for this credit. Your declared figures must match Notice 6419 sent by the IRS. If you don’t have this notice, you can use your bank deposit history as a reference.
Helpful Tip:
Keep Notice 6419 safe and verify the amounts in your IRS online account before filing.
Debts with the IRS Can Hold Back Refunds
If you owe the IRS money, they can use your refund to settle your debt. This includes previous tax debts or unpaid child support. If any amount remains after covering your debt, only then will you get a refund.
What to Expect?
The IRS will send you an email explaining the situation and how to proceed.
Incorrect Bank Information Can Cause Major Delays
A small mistake, such as a typo in your bank details or your name, can delay your refund or even send it to the wrong account. Double-check all details when filing your return, especially if opting for direct deposit.
Suspected Fraud? Look Out for Notice 5071C
If the IRS suspects identity theft, they will send you Notice 5071C. This letter outlines steps to verify your identity and recover your refund. To enhance protection, consider creating an IP-PIN.
What’s an IP-PIN?
An IP-PIN is a unique six-digit code known only to you and the IRS. It protects your tax filings from fraud. Keep in mind that it’s valid for one year, so you’ll need a new PIN each tax season.
How to Get an IP-PIN?
- Apply online through your IRS account.
- Alternatively, complete Form 15227 and verify via a phone interview.
Paper Returns Are Slow
If you mailed your return, expect significant delays. Manual processing takes much longer compared to online filing. The IRS recommends e-filing, which is processed 90% faster, often within 21 days.
Revised Returns Take Longer
If you’ve made changes to your tax return after filing, the waiting period increases. Amended returns typically take up to 16 weeks to process.
Received a CP07 Notice?
Getting a CP07 notice means the IRS needs more time to review your return thoroughly. Unfortunately, this could delay your refund by 6 to 12 weeks.
Conclusion
Tax refund delays can happen for several reasons, but most of them are preventable. Double-check your information, file online, and stay updated with IRS notices. If you suspect issues like identity theft, follow the steps outlined in Notice 5071C to protect your identity and recover your refund.
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Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
