Tax season is here: are you prepared for filing issues? Tax Audit reviews the issues you may experience when filing your 2019 return. TaxAudit is an audit defense solution provider, helping clients protect their federal and state tax returns from audits.
While the 2020 tax season didn’t begin with a government shutdown, taxpayers might nonetheless endure some of the same problems that many filers experienced in 2019 if they failed to adjust their withholding amounts for a second year after the Tax Cuts and Jobs Act of 2017. As a result, many taxpayers failed to receive their full refund, and some even paid taxes that they might not have been required to pay had they filled out the correct form. Even if you didn’t notice anything amiss last year, you might have been entitled to a greater refund, so its critically important that you make sure you submit the proper W-4 form this year.
The purpose of tax withholding is to make sure that the taxpayer pays their taxes as they go and is either not obligated to pay anything or has a refund due by the time Tax Day rolls around. The tax refund check is the biggest yearly paycheck for a huge percentage of Americans. The average tax refund for 2019 was approximately $2,725.
While the above circumstances are certainly major problems, they aren’t the only headaches you could experience when completing your 2019 tax return. With tax season officially upon us, here are a few of the difficulties you may face when preparing and filing your return.
Lack of IRS customer support.
If you need extra assistance with your return this year, it may be difficult, since there have been reports of understaffing with the IRS, which has led to a report from the Taxpayer Advocate Service that it is among the “lowest performing federal agencies” for customer service.According to the Taxpayer Advocate Service, only 29 percent of calls seeking support from an IRS representative were answered in the 2019 tax season
Issues with information technology.
Much of the technology used by the IRS is woefully outdated; its infrastructure isn’t capable of processing returns and addressing taxpayer queries and issues efficiently, according to the Taxpayer Advocate Service. While it has been estimated that the federal agency would need upwards of $2 billion to perform the necessary updates, only one-quarter of that was spent in 2019 to address the concerns.
Refund check delays.
While many refund issues of the previous year were due to confusion about the new reporting requirements of the Tax Cuts and Jobs Act, refund check delays were also due to deficiencies in electronic fraud detection technology, causing returns to be flagged for no cause.
Although administrative problems in the IRS can cause issues with filing, it is possible to offset many potential challenges by filing your return as soon as possible. The later you file, the more likely you are to struggle with your return, and the less likely you will be to get timely assistance.
TaxAudit: Reviews, Protects, and Defends Tax Returns
TaxAudit reviews a diverse spectrum of federal and state income tax returns, defending clients against audits successfully and affordably. For more information about how TaxAudit can help you, please visit TaxAudit.com.