United States

Try NOT to file paper Federal Tax Return

Tax season is back, and the IRS is warning that the tax refunds will be delayed. Last time anyone has checked, the IRS had 6 million returns not yet processed in 2021.

Due to the pandemic and years of underfunding, the IRS expects enormous challenges related to refund processing. The tax season begins on January 24, and the filing deadline will actually be pushed to April 18 because of Emancipation holiday in D.C.; Maine and Massachusetts residents have until April 19 in celebration of the Patriots’ Day holiday.

No one needs to wait to file the 2021 tax return, even if their 2020 tax returns are still pending review. That being said, if the person is owed a refund, they might not receive it for a while.

It is advised that as soon as one has their 2021 records, such as W-2s, 1099s, and other year-end statements, they should go ahead and file their 2021 tax returns.

The IRS Commissioner Charles Rettig said filing electronically with direct deposit was the best way to obtain the return the fastest. For example, those who file electronically and have the IRS direct the return to the bank account could receive their return within 21 days. Accuracy is also key, as inaccuracy with IRS records would require manual processing and cause a delay.

There are some who have filed a tax return in 2020 and still waiting on the refund; the “where’s my refund?” status hasn’t updated. Taxpayers might have to brace for impact this year and try to keep it as easy as possible for the IRS to even make refund possible for themselves.

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