The National Taxpayer Advocate recently issued their annual report to Congress, according to CNBC. The tone of the report is steeped in worry about the efficiency of the tax season, which opened on January 24. Specifically, the organization suggests the possibility that tax refunds could be delayed in 2022.
Possible tax refund delays. In its annual report to Congress, the National Taxpayer Advocate suggests the 2022 tax season is shaping up to be a messy one. More than 6 million tax returns were unprocessed as of December, and many taxpayers didn't get refunds for up to nine months after filing. It added that filers with questions or concerns are having trouble contacting the IRS, especially via phone.
How to avoid a tax refund delay. Of course, there are ways to mitigate a tax refund delay, and according to the IRS, the best way to do so is to e-file and select direct deposit. If there are no errors, filers who do this should get their refund in around 21 days. Those filing by mail, or waiting for a paper check typically have longer to wait for their refund.
If you have all your ducks in a row during tax time you stand a better chance at not having to wait. Be sure you double-check your return before you file it, and make sure you carefully record any special circumstances.
The last stimulus check and advanced funds from the Child Tax Credit both need to be recorded in your tax return if you received them. The IRS is sending letters to filers with special instructions, and if you file without this you may face a delay.
Be prepared. If you're planning on using your tax refund as a down payment on your next vehicle, you may feel that time is of the essence – understandable with the rising prices of both new and used cars. If you're waiting for your refund and already feeling the sting of car shopping with bad credit, take advantage of your wait time to prepare for your upcoming auto loan.
Gather your proof of income, residency, and a working phone, collect a list of personal references and take the time to research vehicles within your price range. Remember that your down payment amount will depend on your situation, but the general rule is at least $1,000 or 10% of the vehicle selling price as the minimum amount.
Find the right lender. While you wait for your tax refund, the final piece of the car loan puzzle is finding a lender that can work with your credit situation. At Auto Credit Express, we work with a network of special finance dealerships that spans the country, and we want to connect you to one in your area. These dealers are signed up with lenders that know how to handle many types of credit challenges. To get started, just fill out our fast, no-obligation car loan request form.
