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Tax identity theft remains a ‘serious problem’
One key reason to file your return early is to avoid tax identity theft, experts say. By filing sooner, you can block thieves from using your Social Security number to file a fraudulent return, Brewer said.
Tax-related identity theft continues to be a “serious problem,” with many victims facing processing and refund delays, National Taxpayer Advocate Erin Collins wrote in her January report to Congress.
At the end of fiscal year 2024, the average processing time to resolve identity theft victim assistance cases was more than 22 months, up from 19 months the previous year, Collins reported.
For the 2024 filing season, the IRS confirmed more than 15,600 identity theft returns through Feb. 29, 2024, up from about 12,600 in 2023, according to a Treasury report issued on April 30.
‘Measure twice, cut once’
Whether you’re filing early because you’re eager for a refund or want to protect yourself from identity theft, you’ll still need a complete and accurate return to avoid delays, experts say.
While many tax forms come in January, others won’t arrive until mid-February to March or longer, according to the American Institute of Certified Public Accountants.
But once you have the necessary forms, “don’t be in a hurry to press ‘send,'” said Tom O’Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.
You should always double-check key details like your name, Social Security number, banking information and other filing data. When it comes to return accuracy, aim to “measure twice, cut once,” he said.
IRS layoffs could impact service
With thousands of IRS layoffs this week, some experts worry the cuts could impact taxpayer service.
But your refund shouldn’t be affected if you file an accurate return electronically and select direct deposit for payment, O’Saben said.
Typically, you can expect the IRS to process your e-filed return within 21 days. “Corrections or extra review” could take longer, according to the agency.
“Barring a [system] crash, I would expect business as usual,” O’Saben said. “There shouldn’t be an issue meeting the timeline that the IRS lays out.”