IRS Addresses Common Tax Refund Myths

WK_Federal Tax Day – Current I1 IRS Addresses Common Tax Refund Myths IR-2020-161 Jul 17 2020.pdf

Federal Tax Day – Current, I.1, IRS Addresses Common Tax Refund Myths (IR-2020-161), (Jul. 17, 2020)

Tax News, Journals and Newsletters > Federal Tax > Federal Tax Day – Current > INTERNAL REVENUE SERVICE > I.1, IRS Addresses Common Tax Refund Myths (IR-2020-161), (Jul. 17, 2020)

The IRS has addressed various myths regarding tax refunds and reminded taxpayers that there is no secret way to find out when a refund will be issued. Further, the IRS informed taxpayers that interest on individual 2019 refunds reflected on tax returns filed by July 15, 2020, will generally be paid from April 15, 2020, until the date of the refund. The common myths which are circulating and misinforming taxpayers are:

  • Getting a refund this year means there’s no need to adjust withholding for 2020:
    adjusting tax withholding with an employer can help ensure that neither too much nor too little tax is withheld from an employee’s paycheck. The Tax Withholding Estimator helps taxpayers figure out the right amount.
  • Calling the IRS or a tax professional will provide a better refund date: the IRS assistors and tax professionals cannot move up a refund date nor do they have access to any “special” information that will provide a more accurate refund date.
  • Ordering a tax transcript is a secret way to get a refund date: this does not accelerate the issue date of a refund.
  • The “Where’s My Refund?” tool is wrong because there’s no deposit date yet: when “Where’s My Refund?” shows the tax return status is received it means that we have received the tax return and are processing it.

Some tax returns may take longer to process than others and need further review. This includes when a return: (1) has errors; (2) is incomplete; (3) is affected by identity theft or fraud; or (4) includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process. Moreover, situations that could decrease a tax refund include math errors or mistakes, owed federal or state taxes, child support, student loans or other federal non-tax obligations. Some taxpayers may also receive a letter from the Department of Treasury’s Bureau of the Fiscal Service if their refund was reduced to offset certain financial obligations. Taxpayers can also call the IRS’s automated refund hotline at 800-829-1954, which uses the same information as “Where’s My Refund?”. However, there is no need to call the IRS unless “Where’s My Refund?” says to do so.

IR-2020-161

 

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