Are You Waiting For A Tax Refund? Listen To Expert Recommendations To Avoid Significant Delays

As per reports from CBS New York, on Monday, the Internal Revenue Service will begin taking federal tax returns for the year 2021. If you’re expecting money refunded, federal officials warn that it may take longer than expected.

The IRS is predicting a difficult tax season as a result of the epidemic, citing staffing challenges, a lack of resources, and a large backlog. It had 6 million unprocessed individual returns as of December 31, and it noted that it had to fix much more problems on tax returns than in previous years.

Experts Claim That Substantial Delays May Be Avoided

“The federal still allows paper filing, but it’s not a great idea because you’re gonna be sitting there waiting months and maybe years until they process your return, so e-filing is the way to go,” certified public accountant E. Martin Davidoff told CBS2’s Jenna DeAngelis.

Along with filing digitally and opting for direct deposit, Davidoff advises that you make sure your return is accurate by gathering all of your documentation ahead of time.

“If you received advanced child care credits, make sure you have all the information about what you got on that,” he said.

Those who received a third stimulus check, as well as those who received a second stimulus check, will receive a letter from the IRS with that crucial information. It’s essential, according to Davidoff, to file and pay on time.

“If they don’t file, there’s a 5% per month penalty on what they owe. Better to file, get current on their 2022 estimates, and deal with the IRS on the past stuff. The IRS will work with you,” he said.

You can access your online account right now with just a login and password, but beginning this summer, you’ll also need a photo ID and a selfie. To protect against potential identity theft, the IRS is turning to facial recognition via a third-party verification

“Passwords can get stolen. Faces cannot get stolen, but on the other hand, a concern from a consumer perspective is going to be perception-based, which is how secure is my identity stored with the government, and I think that’s a big hurdle the IRS will have to come through,” cyber security expert Ahmer Inam said.

Right now, the emphasis is on the upcoming tax season, which begins on Monday and meets the April 18 deadline.

Posted on