Last week, the National Taxpayer Advocate Erin M. Collins stated in her Annual Report that 2021 was "the most challenging year taxpayers and tax professionals have ever experienced." She also expressed concern for the upcoming 2022 tax season, which may see a high number of delays as well. With the IRS starting the year with over 6 million unprocessed tax returns and still overwhelmed with the additional workload caused by the many pandemic programs enacted by Congress, this tax season is sure to give 2021 a run for its money.
While internal IRS issues and delays are out of taxpayers control, here’s 5 ways you can cut your processing time and speed up your refund!
1. Wait for all your forms.
In addition to the usual W-2 and other forms you are used to receiving, you may also need to obtain Form 1099-G (Unemployment income), 1099-MISC (miscellaneous income from gig jobs such as Uber, Shipt, and Amazon Flex), IRS Letter 6419 (Child Tax Credit payments), or IRS Letter 6475 (EIP/Stimulus payment), among others this year. Most of these tax forms will be available online through the issuer’s website or app. Visit our Tax Resources page to create an IRS account where you can view and print your child tax credit payments and EIP payment amounts. Making sure you are reporting the exact amounts will avoid processing delays once you file.
2. Use a good mailing address.
The IRS does not communicate by email, phone call, or text. If there are any issues with your tax return, the IRS will mail you a letter to the address listed on the return. This letter will have specific instructions on what the IRS needs from you in order to complete processing of your return. Therefore, it's important for you to use an address where you can easily access the mail. If you don’t respond to the letter sent to you, your return will be delayed indefinitely until the IRS can speak with you about the matter. In some cases, it may also lead to a balance being generated on your account and collection activities to ensue.
3. e-File your return.
Mailed tax returns could normally take around 8 weeks to process but with the IRS currently backlogged, it could now take months. e-Filing your return can speed up the process to less than 3 weeks and can be used rather you are filing online, with a tax preparer, or using IRS Free File. The IRS strongly suggests e-filing your return whenever possible.
4. Choose direct deposit.
Once your tax return has been processed, receiving your tax refund check via US Mail can take weeks. You can get your refund the same day it's issued by choosing direct deposit instead. If you use a prepaid card or nonbank account such as Cash App or Chime, you may even receive your refund a few days early!
5. Use a tax professional.
A knowledgeable tax pro will ensure your return is compliant and correct. They can navigate you through your tax situation, explain what credits and deductions you do or don’t qualify for, and educate you on what documents or proofs you might need. Having an experienced tax professional prepare and sign your return ensures the proper due diligence has been performed, information has been properly entered, and discrepancies have been resolved before filing which can prevent unnecessary delays.
If you are looking for a new tax preparer, schedule a free consultation today to get answers to all your tax-related questions, discuss your current tax situation, and get more information about our services and filing process.
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