How IRS Budget Cuts May Slow Your Refund
Tax returns are due every April 15th. In order to file accurately, you must have all the information necessary to prepare and file your return. So, at the end of January employers and other entities are required to provide you with the proper documentation to use in preparation of your return. W-2’s that include your taxable wages and the amount already withheld and paid to the IRS, along with student loan interest and mortgage interest statements are sent to you. It is your job to determine how to apply the information contained in these documents to your unique tax situation, and file a return on time. Failure to file timely or to remit additional taxes due can result in fines and penalties. If however, you are entitled to a refund, getting your return uploaded by April 15th is no problem. And, the sooner you file your return the sooner you can expect to receive your refund, right? Well….maybe not this year.
Recent cuts to the IRS’ budget have led many to speculate that refunds may take longer than anticipated to reach taxpayers this year. It has been reported that while the chance of audit will likely decrease, the chance of your refund arriving on time will also decrease. Here are the details:
- Audit rates for previous years were at 1.0% overall, with a lack of funding to employ enough staff to review returns; this rate could drop even lower.
- Along with the drop in audit rate there comes a drop in the level of customer service the agency is able to provide. This can lead to frustration for many taxpayers who are seeking important answers to tax related questions as returns are prepared. Without reliable customer service capabilities, wait times for nearly everything will increase.
The best way to avoid a long wait is to act quickly. As soon as you have all the documentation needed to prepare your return, prepare it and get it filed! Beware though; others likely have this same idea, so the benefit you receive may be negligible. Another tactic that may work is to forego seeking assistance from the IRS, and instead utilize the skills of a trained legal tax professional. We have experience in all areas of tax law and can help you make sure your return is done properly, and on time.
Let the professionals at Nielsen Law Group help you today. Call (480) 888-7111 or submit a web request here. We work with you for satisfactory and timely results.