The question most individual taxpayers want answered is, “When can I expect my income tax refund?” In past years, the Internal Revenue Service (IRS) provided a “refund cycle chart” to tell you when you could expect your refund. Based on the 2012 chart, most refunds were issued between 7 – 13 days, based on when your return was accepted by the IRS. However, they aren’t providing such guidance for 2012 tax returns.
Why not? The IRS is now focused more on verifying returns for fraud and identity theft. With more and more electronic filing of returns and direct deposit of refund checks, there has been an increase in the number of fraudulent tax returns filed, with the refunds being deposited into bank accounts of identity thieves. Tax returns will now be analyzed for “incoming transactions” and placed in different categories for funding. The IRS has not stated what denotes an “incoming transaction” but it could be anything from a change in address to a change in the number of your dependents. The only guidance the IRS has provided is that most taxpayers will have their refunds within 23 days, a significant increase over prior years.
Have questions about preparing or filing your income tax returns? Contact our Tax Planning & Preparation Group at 440-449-6800.