What’s a tax filing season without a glitch?
This year the problem is tax fraud. But it’s not what you might think.
The Internal Revenue Service has implemented a new tax refund fraud detection system. Basically, the agency has added screening mechanisms to make sure that the refunds go to rightful owners.
But the fine-tuning of the safeguards has slowed down the issuance of legitimate refunds.
At the beginning of the 2012 filing season, the IRS encouraged ratepayers to e-file and have their refunds directly deposited because that money could be in taxpayer hands (or bank accounts) in as few as 10 days. Now add seven or so days to that.
But, says the IRS, “the vast majority of taxpayers can still continue to expect to receive their refunds in a timely fashion.”
Once the system checks and adjustments are completed, then refunds should return to their quicker delivery schedule.
While IRS efforts are to make sure that criminals don’t get their hands on tax refunds, that goal is little comfort to folks anxiously awaiting their tax cash. Maybe they’ll consider adjusting withholding this year so they won’t have to wait on Uncle Sam next filing season.
Have you filed your return? Have you received your refund or are you still waiting for it?
Get the latest tax news and filing tips by subscribing to Bankrate’s free tax newsletters. You can sign up to get a Daily Tax Tip. Or if you prefer a more consolidated collection, subscribe to the Weekly Tax Tip newsletter. Or sign up for both.
You also can follow me on Twitter @taxtweet.