July 19, 2024
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What Are Some Common Tax Refund Issues and How Can They Be Resolved?

If you haven’t heard it yet, the Internal Revenue Service (IRS) is one agency you don’t want to mess around with. They can be relentless in finding those who owe them money and making them pay. 

According to recent information, the IRS still has a backlog of around 35 million tax returns that still need to be processed. In comparison, the backlog size is approximately three times larger than it was the previous year. 

If you have issues with your tax return, keep reading this guide to discover the top tax refund issues and what you can do about them.

1. Incomplete Application

One of the biggest mistakes that can cause tax issues is an incomplete application. Several things can cause the return to be flagged as “incomplete” or “incorrect.” These can include the following:

  • Incorrect identification number (ex. social security number)
  • Forgetting a signature
  • Wrong date
  • Or missing information

In these instances, it can prompt an IRS review, which can result in a delayed return. If your return is under consideration, you will generally receive a notice such as a CP05 notice to inform you of the review taking place.

How to Resolve

If there is missing information, the IRS will contact you and ask to provide the necessary information. If you receive a notice and don’t receive your return, it’s best to contact the IRS. If needed, you can use emergency tax services such as https://silvertaxgroup.com/emergency-tax-services/ to avoid any further issues. 

2. Suspected Fraud

There’s fraud everywhere nowadays, and your taxes are no exception. According to information from the United States Sentencing Commission, there were 64,565 cases reported to the agency in 2020. 

If the IRS suspects a fraudulent return, they will also send you a notice in the mail. The IRS is a powerful agency that can do things like seize your property or garnish your wages and send you to jail if you are committing tax fraud. 

How to Resolve

If the IRS suspects you committed tax fraud, new tax laws state you can be subject to punishment. It’s best to contact an experienced attorney that can help you through the process. Don’t wait if you receive a notice to avoid further penalty. 

3. Missed the Deadline

When you miss the tax deadline, one of two things can happen. If you are owed a return, there is no penalty. However, if you owe money to the IRS, the tax law states they can tack on a late penalty that increases each month you miss. 

How to Resolve

If you miss the tax deadline, it’s best to file as quickly as possible. Either way, if you owe money or are due for a return, it’s best to take care of it as soon as possible. You can also opt to contact an emergency tax service to help you settle it.

Tax Refund Issues: Getting The Most of Your Return

When it comes to tax season, you should be prepared and ready to file before the deadline. If you miss the date or experience any of these other tax refund issues, you can end up owing even more money to the government. Get the most out of your tax return and hire a professional if needed to help you file.

For more on the latest tax law changes in 2021 and other helpful information to save you money, head over to our blog!