There may never be a good time to draw the IRS’ attention, but this year you really want to avoid extra scrutiny.
The IRS is so understaffed and overwhelmed that even a tiny mistake could delay your refund for months. A return that requires “manual processing” – basically, any action by an IRS employee – could join a massive queue that started building at the beginning of the pandemic and has yet to be resolved. If something goes wrong, good luck getting through to a human: The IRS answered about 1 in 10 calls last year, down from about 1 in 3 before the pandemic, according to the National Taxpayer Advocate.
To avoid tax hassles, the best approach is to be careful, thorough and digital when you file your return.
DON’T FILE A PAPER RETURN OR ASK FOR A PAPER CHECK
Let’s start with the basics: File electronically and request direct deposit of any refund you might be due, says April Walker, lead manager for tax practice and ethics with the American Institute of CPAs. If your income was $73,000 or less in 2021, you can use the IRS’ Free File tax preparation option.