The IRS’s turnaround time for processing taxes has become much quicker over the years, with many taxpayers receiving their refunds within three weeks. While most tax returns are processed in the first few weeks after they have been filed, there are several reasons a refund might be delayed.
1. The Tax Return Was Incomplete
One of the most common issues that delay processing is the tax return missing information. If a name, address or number is missing, for example, it might cause a significant delay in the filer receiving their refund.
2. The Tax Return Had Computation Errors
When filers are responsible for correctly interpreting and manually computing complicated tax codes, it’s no surprise there are sometimes math errors. Unfortunately, these errors can seriously delay a tax return being processed.
3. A Social Security Number Was Entered Incorrectly
Social security numbers are essential in processing taxes, so if there is a mismatch between what is entered on your tax return and the information that the Social Security Administration’s database has, a delay can result.
4. The Return Was Filed Early or Late
Although it might seem smart to file early, the tax code is often being changed right up to the first day returns are accepted, and this can result in delays while the IRS updates its tax software. Less surprisingly, filing late may also result in a delay, particularly if you file a paper return as these take longer to process.
5. The Direct Deposit Information Was Incorrect
Typically, opting for direct deposit is the fastest way to receive your return. However, if there is a mistake in the routing or account number, it can set your refund back weeks or months. If an error is found, the deposit may be rejected or the bank may return it, at which point the IRS will have a paper check issued and mailed to you.
6. A Paper Tax Return Was Filed
When you file a paper return, that information still has to be computerized, meaning that someone will be responsible for entering the information by hand. Because of this, even if a paper tax return has no errors, it will take longer to be processed than one that was e-filed.
7. The Return Had to Be Amended
Occasionally, changes will need to be made to a person’s tax return after they’ve already filed, and they will need to file an amended return. Amendments take longer to process than regular tax returns, so you can expect a longer wait time for them to be processed should you have to file one.
When it comes to filing your taxes, triple-checking your information can go a long way in preventing delays. If you have questions or concerns about filing your taxes, you don’t have to navigate them alone. Contact the professionals at KDK Accountancy Corporation for a free consultation at (407) 759-5363 and let them use their expertise to help you get your taxes completed correctly and processed quickly.