Top Ten Reasons Why Income Taxes are not Refunded

Top Ten Reasons Why Income Taxes are not Refunded

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    Few people understand why their taxes are rejected each year. When your taxes are rejected, it is the Internal Revenue Service IRS telling you that something was wrong with your return and must be corrected before your refund is processed. The IRS setup a process called “trigger” every time a tax return enters the IRS office, a computer system capable of electronically diagnosing your return checks for triggers. In ten cases, most tax returns are rejected without further review and returned to the tax payer for additional work. When the taxes are returned for additional tax payer work, the process is slowed by more than 60 days!

    Rejection Reasons

    More than 25 percent of tax payer forgets to submit one or more required forms. The most of all missed forms is the 1099 form submitted to tax payers reporting interest gained. When you do not report interests gain with the IRS tax form 1099, you’re telling the IRS that you did not receive any interest income and therefore someone is lying regarding the interest. This is one of the largest trigger responses by the IRS.

    Wrong Form

    When a tax payer submits the wrong form, they are actually not reporting the correct information to the IRS as all forms contain different blanks which require different information. The same thing occurs on the final tax page where tax payers forget to sign their returns! The most important thing to remember is if someone else is filing your taxes, you are still required to sign them! When you input the dates on each form, you’re legally telling the IRS which year you’re applying the taxes to. If you accidently input last year instead of this year, you’re promised no return for the current year!

    Multiple Submissions

    A massive database exists in the IRS system which tracks who has filed taxes and when the filing occurred. This assists the IRS with tracking those who attempt to submit taxes more than once in a single year. When multiple instances of the same return is submitted, the IRS database flags the returns and treats the situation as if the tax payer is attempting to draw more money not owed to them! When the IRS believes that a tax payer is attempting to draw more money than the amount due, this triggers the IRS audit system. For the next decade, the IRS will be auditing more than 50 percent of tax returns for errors and misrepresentations. Please do your best in reporting the correct information to avoid an IRS audit. Failure to do so will result in more than 30 percent tax penalties with compounding interest!

    Tax Lien Wrong SSN

    Tax liens found within the IRS system will prevent any information shared with the tax payer and automatic forfeiture of money owed in a tax refund. This process is designed to pay all money owed to the pertinent party before a refund is sent to you. The wrong social security number only begs for the user to be audited! Avoid an audit by double checking your social security number and never include additional social security numbers in an attempt to draw a higher tax return! This process is seen as fraud and is punishable by prison time in a maximum security federal prison. When a tax payer is found to have committed tax fraud, any employer may access their tax records and see how dishonest the prospective employee really is!

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