It’s the time of year again when people are eagerly waiting for their tax refunds. Unfortunately, in 2023, the Internal Revenue Service (IRS) has announced a delay in processing tax returns and issuing refunds. This means that many people are going to have to wait longer than usual to get their refunds. In this article, we’ll take a look at what’s causing the delay, how long it is likely to last, and what you can do to minimize the impact.
What is Causing the Delay?
The delay in processing tax returns and issuing refunds is due to the IRS’s continued effort to make sure that taxpayers receive their refunds quickly and accurately. The IRS is taking extra steps to make sure that every taxpayer gets their refund as soon as possible and that it is free from any errors. This means that the IRS is taking more time to review and verify each tax return before approving it.
In addition to the extra steps that the IRS is taking to ensure accuracy, there are also some external factors that are causing the delay. One of those factors is the passage of the Tax Cuts and Jobs Act in 2018. This new law changed many aspects of the tax code and made the filing process more complex. As a result, the IRS is spending more time making sure that each return is accurate and compliant with the new law.
How Long Will the Delay Last?
The IRS has not given an exact timeline for when the delay will end. However, they have said that it is likely to last until the end of the tax filing season in April. This means that taxpayers should expect their refunds to be delayed until the end of April, or possibly later. Of course, this timeline could change if the IRS is able to speed up the processing of returns.
What Can You Do to Minimize the Impact?
Unfortunately, there is not much you can do to speed up the processing of your tax return. However, there are some steps you can take to minimize the impact of the delay. First, you should make sure that you file your taxes as soon as possible. This will reduce the chances of your return being delayed, as the IRS is more likely to process returns that are filed early. In addition, you should make sure that you have all of your documents and information ready before filing, as this will reduce the chances of errors or omissions that could delay your return.
You should also consider filing your taxes electronically. Electronic filing is faster and more accurate than filing by mail, and it can help to reduce the chances of your return being delayed. Finally, if you are expecting a refund, you should consider setting up direct deposit. Direct deposit will ensure that you get your refund as soon as it is processed, even if it is delayed.
Tax refunds are often a welcome source of extra income, so the delay in processing returns and issuing refunds can be a source of frustration. Fortunately, the IRS is taking extra steps to make sure that taxpayers receive their refunds quickly and accurately. While there is not much you can do to speed up the process, you can take some steps to minimize the impact of the delay. By filing your taxes as soon as possible, making sure that you have all of your documents and information ready, and filing electronically, you can help to reduce the chances of your return being delayed.