Don’t file your tax return before you’re ready

tysllpTax Accounting, Tax Season

tax returns, local tax preparer, local tax accountant

Don't file your return before you're ready

Taxpayers should never file late, but they shouldn’t file unless they are ready either. Taxpayers who file before they receive all the proper tax reporting documents run the risk of making mistakes that may lead to processing delays.  Amended returns are currently taking an unprecedented amount of time to process by the IRS so best to have all of your information as accurate as possible.

Typically, year-end forms have already arrived by mail – or are available online – in January. The pandemic however has changed that to some degree. When taxpayers do receive the tax reporting documents, they should review them carefully. If any of the information shown is inaccurate or not available, taxpayers should contact the payer right away for a correction or to ensure they have their current mailing or email address.

New this year, the IRS sent Letter 6419, Advance Child Tax Credit Reconciliation, in January 2022 to help individuals reconcile and receive the full amount of their 2021 Child Tax Credit. This letter includes the total amount of the 2021 advance Child Tax Credit payments issued and the number of qualifying children used to calculate their advance payments. People need this important information to accurately claim the other half of the 2021 Child Tax Credit when filing their 2021 tax return and prevent delays in processing. The IRS reminds people to check this information carefully.

Most eligible people were already issued their third Economic Impact Payment. However, people who didn't qualify for a third payment or did not receive the full amount may be eligible for the 2021 Recovery Rebate Credit based on their 2021 tax situation. They will need the total amount of their third Economic Impact Payment to file an accurate tax return to avoid a processing delay. Taxpayers can sign into their IRS Online Account to view the total amount of the third-round Economic Impact Payment or wait to receive IRS Letter 6475.

Remember to go over all your information before you start. Your accountant will help you through it. If you don’t have an accounting firm, TYS would be happy to help you as a client.

For more on taxes and overall accounting news bookmark our blog page.