The IRS Is Warning There May Be A Delay In Tax Refunds. Here’s How to Avoid It.

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I think I speak for us all when I say, we aren’t really surprised.

I haven’t had a tax refund in many years but I know several friends and family that are still waiting on their 2020 tax refunds.

If you are one of the millions of people that receive tax refunds each year, you may want to over prepare yourself this year because the IRS is warning there may be a huge delay in refunds this year.

As you may know, the pandemic has sort of put a damper on nearly everything. From inflation to processing taxes, everything has been harder to maintain.

With that being said, the IRS Commissioner Chuck Rettig is urging taxpayers to take special care this year while doing their taxes due to several critical tax law changes in 2021 and ongoing challenges facing the IRS related to the pandemic.

In case you don’t know by now, you will need to have form 6475 and form 6419 handy when filing your taxes this year.

However, it turns out, The IRS said it is reviewing complaints by some taxpayers who say that the IRS Letter 6419 sent to them spells out the wrong dollar amount for what the families received in 2021 for the advance payments of the child tax credit, which were issued each month from July through December.

YIKES.

I sort of knew something like this would happen. For starters, my letter was inaccurate as I didn’t receive one month of payments but the IRS says I did.

How to Avoid A Tax Refund Delay

For starters, find the letter the IRS sent you. This is form 6419 and is specifically regarding the child tax credit payments. Look at the amounts the IRS says you received.

Then compare that number with the amount of child tax credit payments you actually received whether you had them direct deposited or a check that was cashed.

The IRS does say that don’t think it’s every single letter but they also don’t know how many letters are wrong.

In addition, make sure you have the other letter as well that talks about the stimulus payment you received last year around March.

The IRS says be absolutely certain that the amounts you received last year for the monthly advance child tax credit payments and the Economic Impact Payment (stimulus) match up with government records and are entered correctly on the 2021 federal income tax return.

“Incorrect entries when reporting these payments mean the IRS will need to further review the tax return, creating an extensive delay,” the IRS warned Monday.

So, if you think your letters are wrong, make sure you discuss that with your tax professional so you can file your taxes accordingly. Otherwise, it could entirely delay processing of your taxes and tax return.

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