Tax Refunds To Be Delayed
Are you ready for the big news? Your tax return next year is going to be delayed. If you were planning on getting that refund quickly to pay for something…time to change your plans. The IRS has put in place a new law which requires them to hold refunds longer. The IRS is warning taxpayers that their refunds are going to be delayed several weeks more than the normal time. In the past, it usually took the IRS 2-3 weeks to process refunds. Therefore, this new law means that it is going to take at least a good month for you to receive your refund check.
What has caused this law to go into place?
- Earned Income Credit & Child Tax Credit : The IRS has had issues with people taking advantage of these credits and receiving refunds they should not be receiving. Therefore, they will be spending additional time reviewing these returns for accuracy. Thus, this will cause a log jam in tax returns being processed and delay the processing of all returns.
- Identity Theft : We all know how big of a pain in the butt Identity Theft has been, especially if you have been a victim. The IRS recognizes that it is a major problem and is taking extra steps to prevent it. They will be examining returns to look for anything that may look suspicious.
What to do if you do not want to wait for your refund…
Take your refund now…What do I mean by this? Use the remaining 4 months of the year to take larger paychecks instead of your refund. You can do this by adjusting your W-4 to lower your tax withholding. Hammernik & Associates specialized in W-4 tax planning and can help you avoid waiting for your refund later. There is a large population that loves getting that huge refund check every tax season, but how long is too long to wait for it?
We can help residents of Milwaukee, Waukesha, New Berlin, Brookfield, Wauwatosa with all of their tax preparation and tax planning needs.
Give Hammernik & Associates a call to avoid waiting for your refund next year and receiving more of that money now. After all, the Government is just taking longer to pay you back on that interest free loan you are giving them.
If you have any questions about this new law or if you want to take tax planning action, call 414-545-1890.
Until next time,
Nicholas Hammernik, EA