Tax Refunds: Myths vs. Facts
Would you know a tax myth from a tax fact? As tax season approaches, there are many myths swirling around about the IRS, tax returns, tax deduction, and anything tax-related. How do you know what to believe? Your CPA is always your best resource for any of these questions, but here are a few myths you might have already heard.
In his new article for CPA Practice Advisor, “The Top Income Tax Refund Myths,” managing editor Isaac O’Bannon addresses the most common ones.
- All refunds will be delayed this year. Some refunds will be delayed, but not all. Specifically, refunds from the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) will be delayed this year. This is due to increased security measures the IRS has put in place to combat fraud.
- If I order a tax transcript, it’s a secret way to get an exact refund date. Ordering a tax transcript will not provide a refund date, and it won’t even necessarily have the exact refund amount.
- If I call the IRS, they will give me an exact refund date. O’Bannon writes, “Taxpayers eager to know when their refund will be arriving should use the Where’s My Refund tool rather than calling and waiting on hold or ordering a tax transcript. The IRS updates the status of refunds once a day, usually overnight, so checking more than once a day will not produce new information.”
Our CPAs can clarify any questions you have as tax season approaches. You can read about more tax season myths in the article from CPA Practice Advisor.