The IRS advises that you must file a thorough and correct tax return if you anticipate receiving a refund this year in order to prevent lengthy processing and delays.
Include any needed tax documents, also known as information returns, which employers and financial institutions provide annually to the IRS and taxpayers.
When To Expect Your Tax Forms
Sheneya Wilson, a certified public accountant and the founder of Fola Financial in New York, stated that if you fail to submit tax documents to the IRS, the agency’s systems may flag your return and send you a notification.
Wilson stated that missing tax documents will definitely cause a refund delay. Here’s what you should know about your tax forms and when to expect them, whether you’re working with a tax expert or filing on your own.
While most tax forms are due on January 31, others aren’t due until mid-February or later, according to The Wealth Advisor’s owner, certified financial planner John Loyd.
For instance, the deadline for Forms 1099-B and 1099-DIV for capital gains and losses and dividends and distributions, respectively, is February 15. However, the IRS grants some investment firms more time to check documents and minimize errors, so you may not receive these papers until March, according to Loyd.
If you need a corrected form, your filing process may be delayed because it takes time for the investment firm to revise and reissue your documentation, he explained.
Before submitting your tax return, it is crucial to have all the necessary forms available, Loyd advised. It’s a thousand times better to file correctly the first time, he said, stressing that IRS notices might take months to resolve.
Read more: Walmart minimum wage increase comes as the retail industry’s job market remains tight
Review Last Year’s Return
If you are unsure of which tax forms to anticipate, the tax return from the previous year is a good starting point, according to tax professionals.
Marianela Collado, a CFP and CEO of Tobias Financial Advisors in Plantation, Florida, stated that she examines the preceding and current year’s tax filings page by page.
She is also a Certified Public Accountant. She stated that is always a good check.
Common forms for earnings include the W-2 for wages, the 1099-NEC for contract or gig economy labor, the 1099-G for unemployment income, and the 1099-R for payouts from retirement plans.
For 2022, you will likely not receive a 1099-K for payment applications such as Vemno or PayPal unless you received more than 200 payments totaling more than $20,000 throughout the year.
If you received this document in error, the IRS says it is in the process of drafting instructions.
Read more: Supreme Court postpones Texas, Florida social media disputes that might alter platform moderation
