No Refund Cycle Chart
In previous years, the IRS would publish a refund cycle chart showing when a particular tax return would be deposited into a taxpayers bank account if they elected Direct Deposit of their refund. This was true if the return was electronically filed and a refund was due to the taxpayer. However, as a result of numerous fraud issues that have plaqued the IRS community over the recent past, they have discontinued the use of this “Refund Cycle” chart and Publication 2043 has been revised.
Publication 2043 “IRS E-file Refund Cycle Chart” has been renamed “IRS Refund Information Guidelines for the Tax Preparation Community.” The new Publication 2043 is no longer a chart showing the refund cycle time frames. Instead it provides guidance for taxpayers to check on their refunds. Taxpayers can also go on the IRS website and search “Where’s My Refund” to find information.
Fraud Prevention
The delay in issuing refunds is due to a new processing method with an emphasis on fraud. The IRS’s new processing method includes multiple fraud checks based on the information in your tax return. Tax returns will be analyzed for what the IRS calls “incoming transactions” and placed in a different category for funding. The IRS has not stated what denotes an incoming transaction but it could be anything from a change in dependents to a change in address. “The IRS has fraud filters built into their new system and they don’t truly know what category the tax returns will fall into based on the filters in place at the time of review and how many returns are going to be delayed. Those filters could change throughout the tax season” says Joseph Mahaffey, CPA. “The IRS’s priority has shifted from getting you your refund quickly to fraud prevention and identity theft.”
Where’s My Refund Tool
Clients should self check the IRS website, Where’s My Refund, for exact information regarding their refunds for this 2012 tax filing year!
