Understand Refund Deadlines and How to Avoid Delays
At My Accounting Now, we believe in empowering business owners with the knowledge and tools they need to thrive. Our blog serves as a resource hub, offering insights into critical aspects of business finance, from effective bookkeeping practices to strategic tax planning. By staying informed and proactive, business owners can avoid common pitfalls and leverage financial strategies to fuel their growth and success.
Understand Refund Deadlines and How to Avoid Delays
2025-03-11
It's important for taxpayers to know tax filing deadlines and how to avoid tax delays. Accurate records for tax purposes not only comply with the law, but also allow for faster returns.
Deadlines for filing tax returns are set by the IRS. In recent years, electronic filing has become popular. This method is faster than the traditional paper method and speeds up the filing process. The IRS says most electronic filings are processed quickly, within 21 days, so choosing to file digitally is an effective way to get your refund quickly.
In addition, it's important to complete the return correctly as transmission errors are one of the factors that cause delays, as additional review will be required. Errors can include omitted information, incorrect calculations, omission of required formatting, or indications of identity theft or fraud. Therefore, it's wise to review each document before submitting it.
Under the PATH Act, the IRS cannot issue refunds for tax returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February. The IRS must hold the entire refund, not just the portion associated with these credits, until the review is complete.
The final part of the return that is often overlooked is credits and deductions. Each year, new tax laws can change the availability of these benefits. Taking advantage of these credits can not only reduce your tax liability, but also maximize your refund. Staying informed about annual tax updates is key to ensuring you take full advantage of what you can deduct.
To make the entire tax filing process quick, easy, accurate, and free of delays, it is advisable to have all documents organized whether in paper or digital form. Such documents as W-2 forms from employers, 1099 forms from banks or other payers, 1099-K forms from third-party payment networks, 1099-NEC forms for non-employee compensation, 1099-MISC forms for miscellaneous income, 1099-INT forms for interest income, and records of all digital asset transactions.
Finally, filing electronically and selecting direct deposit—that is, having it electronically deposited for free into your financial account—remains the fastest and safest way for taxpayers to receive their refunds. Which can also be deposited onto prepaid debit cards or through mobile payment apps, as long as they have account and routing numbers.
Being forward-thinking and adapting to technological advancement will improve the process. A better understanding of the tax system can bring personal benefits, but it also creates greater trust in the tax administration.