Wednesday, April 21, 2010

Where's My Refund?

The following article describes the steps available to keep on top of your tax refund and where it is in the IRS processing system. You should have a copy of your tax return available with expected refund information, as well as pen and paper to jot down any needed information.

Tracking Down Your Tax Refund
by Kay Bell
provided by and excepted from BANKRATE.COM

You're getting a tax refund. So where's your check?


Now you can go online or call a special toll-free number to check your refund status, regardless of whether you're awaiting a check in the mail or you've instructed the IRS to directly deposit your tax cash into one or multiple accounts.

The Waiting Game

But exactly when you need this service depends on how you filed your return. Processing times differ for paper and electronically filed 1040s. How you ask the IRS to send you your money also makes a difference.

If you e-file and request direct deposit, the IRS says it should take no longer than three weeks for you to get your refund. If you filed a paper return and asked that your check be mailed to you, it could take up to eight weeks.

Once you're past the time frame for issuance of your refund, it's time to log on and locate your money.

Necessary Tracking Data



After you've entered the necessary data, then click and wait for the good news that your check is in the mail.

Dialing for Tax Dollars



And, as with the online system, don't call unless it's been the requisite number of weeks for your filing method.

What's the Holdup?
In most cases, the IRS says a taxpayer will learn via the Web site or by phone that his or her return was received and is being processed.




Speeding Up the Process
Waiting any longer than necessary for a refund is one of the most infuriating parts of the filing process. That's why the IRS encourages taxpayers to do what they can to speed up the process.

The quickest path to your refund, says the IRS, is through e-filing and refund direct deposit. This usually cuts a refund wait to half of what paper filers face. In fact, says the agency, some refunds, especially those filed for early in the tax season, are issued in as little as two weeks.

Sometimes a slow refund is the filer's fault rather than the result of an overwhelmed IRS. Refunds are delayed when a taxpayer makes a mistake on a return, causing the agency to spend time tracking down the correct data. Some common filing blunders are math miscalculations, a mismatched name and Social Security number, a missing signature or omitted attachments such as W-2s or IRS schedules.

What If It's Lost?
Occasionally, though, a tax check actually is lost.





What If the Check Is Wrong?
When a refund check finally arrives, sometimes there are more questions than answers.

If you get a refund and you weren't expecting one, or the check is for more than you thought you'd get, don't cash it. The IRS should send you a notice explaining the difference, along with any additional information or instructions. If you don't get an explanatory letter within two weeks of getting your questionable refund, it's time to call (800) 829-1040 again.

On the other hand, if your refund is less than you expected, go ahead and cash the check. If further investigation reveals that you should have received more, the IRS will make up the difference (plus a bit of interest if it takes more than 45 days to correct the error) and send you another check for the balance due.

Check Your Bank Account
The IRS has one final piece of advice for anxious filers still looking for that refund: If you requested direct deposit, check your bank account regularly.

The IRS will simply transfer the money to your financial institution without sending you any other notification. It's up to you to find out if the refund is already in your account.