IRS Seeks To Help Taxpayers File Correctly First Time

by Mike Godfrey, Tax-News.com, Washington

20 December 2017

The Internal Revenue Service has issued a reminder to taxpayers on how to avoid errors and refund delays when filing individual tax returns, highlighting also the benefits of filing electronically.

Taxpayers earning less than USD66,000 can use IRS Free File software without charge, and volunteer income tax assistance and tax counseling is available for the elderly. In addition, the IRS pointed out that its IRS2Go mobile app can help taxpayers find free tax assistance and check their refund status, among other things.

The IRS has warned taxpayers that they should ensure they have all the documentation necessary before attempting to prepare a return, noting that such typically arrives before January. This includes Forms W-2 from employers and Forms 1099 from banks and other payers. In addition, those claiming the Premium Tax Credit need Form 1095-A. "Not having all required documents may cause a return to have an error that delays processing and therefore, delays the refund," the IRS said.

The IRS added that "choosing e-file remains the safest way to file an accurate income tax return and combining it with direct deposit is the fastest way to receive a refund. In 2017, more than 88 million tax refunds worth over USD260bn were directly deposited into taxpayer's bank accounts."

It noted: "In 2018, the IRS again expects to issue more than nine out of 10 refunds in less than 21 days. However, by law the IRS cannot issue refunds if the return claims the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. The change applies to the entire refund and helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent tax fraud."

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

To manage your mailing list preferences, please click here »