With the 2016 income tax filing season in full swing, the Internal Revenue Service (IRS) has issued an alert that debunks myths surrounding tax returns.
Here are several myths to remember:
- All refunds are delayed. FALSE.
- 90% of federal tax refunds are issued in less than 21 days. Some returns may require additional review for a variety of reasons and may take longer.
- Calling the IRS or my CPA will provide a better refund date. FALSE.
- The best way to check the status of a refund is online. Visit irs.gov and click on “Where’s My Refund?” or download the IRS2GO Mobile App. The IRS updates the status of refunds once a day, usually overnight. There is no need to call unless requested to do so by the refund tool online.
- “Where’s My Refund?” must be wrong because there’s no deposit date yet. FALSE.
- The IRS will update “Where’s My Refund?” with projected deposit dates for early EITC (Earned Income Tax Credit) and ACTC (Additional Child Tax Credit) refund filers a few days after February 15th. The IRS cannot issue refunds before February 15th for tax returns claiming the EITC or ACTC. The IRS must hold the entire refund, not just the part related to the EITC or ACTC. The IRS will begin to release refunds on February 15th and most likely the refunds won’t arrive in bank accounts or on debit cards until the week of February 27th. Banking and financial systems need time to process deposits which can take several days.
For more information about your tax refund contact your LSL Advisor.
