As tax season approaches, many Americans find themselves in a race against time. With nearly a third of individuals procrastinating, as highlighted by a survey conducted by IPX1031, it becomes clear that tax filing is an area where timing is crucial. A staggering 33% of individuals delay submitting their tax returns, which inadvertently opens avenues for risk and complications, notably in the form of tax-related identity theft. San Diego tax attorney Adam Brewer emphasizes the importance of filing without delay, suggesting that gathering your documents and submitting your return as early as possible can alleviate future problems.
One of the most pressing issues concerning late tax returns is the growing prevalence of tax-related identity theft. Online criminals often prey on procrastinators, using stolen Social Security numbers to file fraudulent returns before the rightful owners have a chance to submit theirs. This timely adversary remains a significant concern, highlighted in a report led by Erin Collins, the National Taxpayer Advocate. Collins confirmed that identity theft is not merely a nuisance; it represents a serious problem that can lead to extensive delays in resolving issues for the victims involved.
The statistics are alarming: the average resolution time for identity theft assistance cases had climbed to over 22 months by the end of fiscal year 2024, an increase from 19 months the previous year. This emphasizes the importance of early action during tax season to help safeguard oneself against these fraudulent activities.
Even though tax season kicks off in January for many, certain key documents do not become available until later in the tax year, sometimes as late as March. It is vital for taxpayers to be patient and wait until they have all necessary forms before filing. While the impulse to file as soon as possible exists, rushing through the process can lead to mistakes that may cause significant delays. Tom O’Saben, a director at the National Association of Tax Professionals, recommends adopting a cautious approach; he advises taxpayers to carefully verify crucial details before submission. This includes double-checking names, Social Security numbers, and banking details to minimize errors that could lead to troublesome repercussions down the road.
This tax season is further complicated by workforce reductions at the IRS, raising concerns about the agency’s capacity to provide the necessary service levels to taxpayers. With layoffs occurring that could impact the efficiency of taxpayer assistance, individuals may find themselves navigating an increasingly complex system without as much support. Despite these concerns, experts like O’Saben remain optimistic, affirming that electronic filing with direct deposit can expedite the refund process, typically within 21 days. However, they caution that any corrections or reviews could extend the wait time.
Filers must understand that while the route to a refund seems straightforward, external factors like systemic issues can complicate the experience. Therefore, ensuring that returns are filed accurately and as promptly as possible is critical for availing oneself of the expected refunds on time.
The urgency associated with filing taxes should not lead to chaos; rather, it should inspire a methodical approach. Taxpayers must prioritize completing their returns accurately while simultaneously navigating the ever-present risks of identity theft and bureaucratic inefficiencies. The adage “measure twice, cut once” is particularly pertinent here. By taking the time to prepare and file responsibly, taxpayers can emerge from tax season with minimized risks and maximized returns.
It is clear that timely filing transcends simply wanting a refund. It is an essential strategy for protecting personal information and ensuring a smoother tax experience overall. With a rise in identity theft cases and potential disruptions in IRS operations, the call to action is simple: be proactive, stay informed, and file early.