Even if your taxes seem relatively simple, the Internal Revenue Service needs time to process your tax refund. Since identity theft and fraud cases have spiked in recent years, the IRS is taking additional steps to protect you and your refund.

Tax professionals can help you manage your payroll and tax obligations and can even provide customized bookkeeping needs to small businesses. With the right team on your side, you can make sure your business needs and tax obligations are met.

Timing of refunds

Typically, the IRS tries to process refunds within 21 days of their submission, so submitting early is always better. There are exceptions for individuals claiming the Earned Income Tax Credit or Additional Child Tax Credit. The IRS is prohibited from paying out these refunds before mid-February, to give them more time to detect fraud, but they will pay them out as soon as possible.

However, any refund can be delayed due to missing or incorrect information. Refunds may also be delayed if the filer has to appeal their tax obligations or request an extension. Past-due debts to the IRS may also cause some or all of your refund to be withheld.

Additionally, COVID-19 has created new obstacles for the IRS and individual taxpayers. As of late April 2020, the IRS is struggling to process refund requests as most IRS employees work from home, and their focus was on the implementation of the federal government’s economic rescue plan. Although the worst delays are for tax paperwork that was submitted on paper, electronically filed taxes may be subject to delays as well.

Electronic filing

Regardless of current events, filing taxes electronically is the fastest way to get your refund. It enables you to submit your bank information securely and gets your paperwork to the IRS in minutes rather than days.

Choosing direct deposit is much faster than waiting for a check. Electronic filing has no additional fees from the IRS, and when done with the help of a tax professional, it can be just as accurate and secure as paper forms.

You can also use the IRS.gov Where’s My Refund tool to find out how soon you’ll get your refund. Although the information listed in their system is subject to change, it’s a good starting point if you’re anxious to get your refund as soon as possible.

Bonuses and other changes

Any changes to your income can affect your tax liability unexpectedly. For example, selling a home or receiving high stock dividends may increase your tax liability. Most Americans use automatic payroll deductions or quarterly payments to pay their estimated taxes in advance, so changes in income can significantly alter that estimate.

If you own a small business, an accounting and payroll service can help you deal with unexpected changes in income. Reliable tax and bookkeeping services free up you and your staff to work on growing your business, instead of worrying about your tax obligations for the year.

Fast and professional accounting services

Caro & Associates provides a full range of tax, payroll, and bookkeeping services to the optometry industry and other professionals.

You can reach us by phone at (206) 497-0671.

If you prefer, email us at info@caroandassociates.com and someone will get right back to you immediately.