April 25, 2022 - Douglas Myser

What will slow down a tax return. Taxpayers often call us to ask about why the tax return they sent in has not been processed, and it could have been 3-4-5-6 months ago. That is more complicated during the age of Covid, as the pandemic has caused significant delays and problems for the normal functioning of government operations. But other things can also impact a Tax Return from being processed in normal speed, and its those issues we will discuss. What will slow down a tax return.

Make sure you answer the Virtual Currency question. Since it looks like the government is on track to regulate and tax virtual currency, the IRS is starting a database of those who own the asset. They started this by asking the question on tax returns a few years ago, so they could compile a list of those with the asset. IF you own the asset and don't answer the question, you have three years to amend your tax return, before that issue could land you in hot water.

One of the biggest mistakes made on tax returns, that cause the IRS to send them back, is making a mistake on the name, birth date, or Social Security number of the taxpayer. If these are incorrect, they will send it back to the taxpayer asking for a correction. For those who request direct deposit of federal funds into a account, the biggest mistake is to give an incorrect check number, or routing number. If they can't send it to your bank, you will not get a refund, even though the tax return information may be correct. Another large mistake is giving the wrong address. Paper filers should confirm the correct address for where to file on IRS.GOV or on form instructions to avoid processing delays.

Another big mistake is to send the return to the wrong processing center. To avoid this, find the last page of the instructions on the IRS form you are filing, as it lists the proper address to mail to. If you have made mistake on a tax returns and have a tax debt, or have unfiled tax returns, we can help you. We are a 35 year old Tax Resolution Company that can determine your options in the IRS code for a best result. That would include the IRS Fresh Start Program, but also all other options not in that program. We are Nationwide and are the Fourth Oldest Tax Resolution firm in America.