You filed with H&R Block
It has just been announced that H&R Block has caused 660,000 IRS refund delays. The culprit: a filing error. People who used H&R Block and who claimed education credits were affected. The delay will be about six weeks. Form 8863, which is used to claim education credits, was processed incorrectly and now customers are irate.
You claimed the Earned Income Tax Credit
The EITC, it turns out, is often used as part of a tax scam. Therefore, federal tax returns claiming the Earned Income Tax Credit are more carefully scrutinized by the IRS. This can delay your tax refund. But not everyone who claims the EITC is suspected of fraud. The EITC is a refundable tax credit and taxpayers claiming this credit must meet certain guidelines. There are employment requirements- and you can’t make over a certain amount of course. Plus, the more children you have, the higher the credit. Now, taxpayers are being told they need to come up with proof that children are actually living with them.
You didn’t file electronically
We just can’t stress this one enough: file your taxes electronically, not with paper forms mailed. This will speed up your IRS tax refund by about a month. You can file your own taxes electronically with tax preparation software like TurboTax or TaxAct, or you can have professional tax preparers do it for you.
You made some typos on your return
Something as tiny as a misspelled address on your federal income tax return can cause delays in processing your return, and therefore your refund will be delayed.
Your tax return was flagged for possible audit
There are all sorts of red flags the IRS has developed, in order to combat tax fraud. When your tax return exhibits these traits, the IRS may put you on a list to be more carefully gone over with a fine tooth comb, to make sure your return is legit. It doesn’t mean you necessarily get audited, but rather hand-checked to see if it’s worth auditing. Things like making lots of money will get you red flagged. That’s because statistics show that wealthy taxpayers have in the past been more prone to cheating on their taxes. Other triggers for delay would be claiming the home office deduction, claiming a loss on your rental property, deducting business expenses like entertainment and meals, or simply taking more deductions than the average taxpayer in your income group.