Tax season is here, and early filing is your best defense against identity theft and refund delays. Don't procrastinate—here’s why you should act now.
Why Early Tax Filing Is a Must
Nearly 33% of Americans procrastinate filing their taxes, according to a survey from real estate company IPX1031. This delay can come at a steep cost. If you have all the necessary tax documents ready, the best step is to file your return as soon as possible. Tax professionals emphasize that timely submission not only expedites any potential refund but also provides a significant safeguard against tax identity theft.
Understanding Tax Identity Theft
Tax-related identity theft is a growing concern, characterized by thieves using stolen personal information, such as Social Security numbers, to file fraudulent tax returns. Not only does this disrupt your financial life, but it can also lead to extended processing and refund delays. For the 2024 filing season alone, the IRS has confirmed over 15,600 cases of identity theft, a notable increase from 12,600 in 2023. Filing early helps mitigate this risk, according to experts like San Diego-based tax attorney Adam Brewer. By being proactive, individuals can protect themselves from the hassle of dealing with identity theft after the fact.
The Pitfalls of Procrastination
Tax identity theft isn't just a buzzword; it poses real challenges. Victims often wait months, sometimes years, to see a resolution. In fact, National Taxpayer Advocate Erin Collins reported that as of fiscal year 2024, the case resolution time for identity theft victims was an average of more than 22 months, increasing from 19 months the year prior. This delay can significantly affect your ability to receive your tax refund and can result in additional stress as you navigate the recovery process.
Maximizing Your Tax Refund Timing
Filing early can significantly speed up your refund. The IRS states that taxpayers can generally expect their e-filed tax returns to be processed within 21 days if submitted correctly. This means fewer waiting games and more cash flow in your pocket. When you file electronically and choose direct deposit for your refund, you have the best chance of getting your money without unnecessary delays.
Prepare for What’s Ahead
Gathering all necessary tax forms can take time, as not all documents are available by January. While those crucial forms may arrive as late as mid-February or March, having your early tax filing strategy in place can prevent last-minute panic. Experts recommend that once all required documents are in hand, take a moment before hitting 'send.' Tom O'Saben, an enrolled agent, suggests taking steps to ensure the accuracy of your filing
- Double-check your name and Social Security number.
- Verify your banking information.
- Review all other pertinent filing data.
By ensuring these details are correct, you reduce the risk of unnecessary processing delays caused by errors.
The Impact of IRS Layoffs
With recent reports of significant IRS layoffs, concerns are growing about how this might affect taxpayer service. While the reduction in staff may seem alarming, tax experts like O'Saben reassure that as long as you file electronically and accurately, you should not experience delayed refunds.
Barring any technical issues, expect the IRS to maintain its typical 21-day processing timeline for e-filed returns. O'Saben emphasizes the importance of keeping your filing accurate despite any service changes, as this will play a crucial role in securing your refund in a timely manner.
The Importance of Acting Now
Delaying your tax filing can lead to increased anxiety, particularly when faced with the prospect of losing your identity to thieves eager to exploit your personal information. Starting your tax return now not only protects you against tax identity theft but also positions you advantageously for timely refunds, despite the looming uncertainty from IRS layoffs.
Don't wait to file; making your move can alleviate countless issues later on. Organize your documents, check everything twice, and hit that submit button with confidence. In the world of taxes, the early bird may not only catch the worm, but it may also catch its well-deserved refund sooner than those who choose to procrastinate.