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IRS: What you need to know about notices, stimulus money, and avoiding fines

The IRS has been finding errors that will probably cause delays.

IRS

Here we will explain the top 3 reasons for delay.


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Top reasons for tax delays

The number one reason your refund is probably delayed is because of an information error. The IRS started sending out notices to people whose tax return information didn’t match IRS records.  CP2100 and CP2100A notices are sent twice a year, if you got one be sure to address it to prevent further delays.

Another common reason for delays is math errors. In April, the IRS sent out more than 9.4 million math error notices. The most common ones are:

  • dependents are over the age limit
  • primary or secondary Social Security number is missing or incorrect
  • adjusted gross income (AGI) is greater than the limit allowed to claim
  • amount was incorrectly computed

Some Americans are still waiting on $1,400 from the third stimulus, but not everyone qualified. You were considered ineligible if:

  • Individuals with an adjusted gross income above $80,000
  • Head of household with an AGI above $120,000
  • Married couples filing jointly with an AGI above $160,000

Do I need to fix my tax return?

For instances like math or clerical errors, the IRS will usually fix the issue so you do not need to amend it. If you have a different circumstance that does require an amendment, file Form 1040-X. This can be done by paper or electronic filing.

If you owe a penalty– the IRS will send you a notice via mail. Each notice will tell you what the penalty is, why, and how to take care of it.

Each notice/ letter sent by the IRS will include an identification number– use this to confirm the information is correct with the IRS.


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