He Internal Revenue Service (IRS) reminded taxpayers that the fastest way to receive a tax refund this year is to request that it be sent by direct deposit when filing the tax return electronically.
“Direct deposit is free, fast and secure. Taxpayers can even divide the refund funds so that they are deposited in one, two or three different accounts ”, they indicate from the IRS website.
According to the agency’s data, eight out of 10 taxpayers receive their tax refund through direct deposit. The system used by the IRS for electronic transfers is the same one used by other federal agencies for depositing the benefits of almost 98% of the accounts corresponding to government programs such as the Social Security Administration or Veterans Affairs.
The agency also notes that requesting payment by deposit reduces the chances that a refund check will be lost or returned to the IRS.
Additionally, processing money electronically costs less than on paper. In the first case, it is $ 1 for each document; while, in the second, 10 cents.
Request direct deposit for disbursement of stimulus checks
Requesting payment by direct deposit not only helps your tax refund arrive faster, it also simplifies and streamlines the procedure for stimulus checks.
In the first and second round of payments, the first to receive payments were the people who supplied the IRS with their bank details for direct deposits.
To ask the IRS for the money to be deposited into a bank account, the person has to go through the procedure as part of their tax return, either through a tax filing program or with the help of a preparer. In both cases, you must supply the account and routing number to deposit the money.
If you don’t have a bank account, you can visit the Federal Deposit Insurance Corporation (FDIC) online site to find information on the account that is right for you and where to open one.
Delays in refunds from the past tax season
Millions of tax refunds from last season have not yet been processed due to the returns being submitted on paper.
In the absence of staff in the agency’s offices due to the coronavirus, the work piled up.
It is better to file taxes electronically
The IRS has recommended on multiple occasions that taxpayers file their tax information online in order to streamline procedures.
The office also advised people to organize tax files as an important first step in the process of filing 2020 taxes.
“Taxpayers should develop a system that keeps all their important information together, which could include a program of software for electronic files or a filing cabinet for paper documents in labeled folders. Having files on hand makes it easy to prepare a tax return. To avoid delays in refunds, taxpayers should make sure to collect all year-end income documents to be able to file a complete and accurate 2020 tax return, ”suggested the entity.
The tax filing season this year begins on February 12.