The IRS has made an announcement that there will be no delays in sending tax refunds to taxpayers in 2013. The current turn-around time for refunds is less than 21 days. That was the length of time it took for 9 out of 10 refunds to be issued by the IRS in 2012 with refunds averaging $3,000 each. The IRS’ announcement declares that they do not expect the standard to drop next year.
This announcement is found on the IRS website, www.irs.gov. Visit http://www.irs.gov/Refunds/What-to-Expect-for-Refunds-in-2013 for details. However, your refund may be delayed if additional review is required by the IRS.
The IRS received a lot of flak early last tax season for delays in issuing refunds, but many of these cases were caused by the new anti-fraud processes. However, most of these issues were sorted out by the end of last tax season.
If you are expecting a refund, you can now check its status with the IRS’ new improved the system that provides you with details on when your tax return has been received, when your refund has been approved and when it has been sent to you. All this information is available within 24 hours after the IRS has received your e-filed return or four weeks after you mail a paper return. By the way, e-filing can be done starting from January 22, 2013.
But here’s one thing most people do not realize about tax refunds. Receiving a refund means you have effectively loaned your money to the government interest free for about a year. The average amount of refunds is $3,000 so it means you would have easily lost $200 in interest at prevailing interest rates.
So it’s not really a good thing to receive a huge tax refund. The best situation is to make your withholding exactly (or close to exactly) what you are taxed for to keep your tax refund to the bare minimum. If you have concerns over your tax matters, call us at (813) 229 7100 for a free consultation.