The Next Step at the IRS

The Next Step at the IRS After Filling Your Taxes

Filing taxes is an important step for running any business. While this step is important, so does what happens after it. It might trouble you to think about the whole process that happens in the background. You will get your tax return and have nothing to do but wait to see if your filing has been proper to all the requirements. Still, you can know what happens actually.

The article discusses these in as simple as possible explanation. This is the tax processing and return process:

Tax Acceptance as Initial Processing

The first thing is the tax acceptance from the IRS. This is in the form of a receipt that tax has been accepted as per the nature of filing. If you file through some digital means, you will receive an email carrying a receipt in the next 24 to 48 hours. If you opt for physical means and send the tax filing through the mail, the IRS will send you a letter containing the receipt.

This is an act of accepting your tax filing which puts you in the pending status. The pending status lasts a few days during which, the IRS carries out its initial processes. These processes include the examination that all the necessary steps are followed, forms are included, and information is complete.

Look for Errors and Inconsistencies

The next thing the IRS looks for are errors and inconsistencies in the filing. This is a vital step and can lead to problems for the business if any errors and inconsistencies are found. This is a product of a thorough review of the filing. It verifies your sources of income, credit claims, deductions, etc. 

It amounts to looking for small errors mathematically, and all sorts of inconsistencies between claims. A small inconsistency can trigger an IRS audit. Moreover, it will affect the time of processing.

Checking Liability for Tax Refund

Once the IRS is sure that there is no error or inconsistency, it checks whether the business is eligible for a refund or does it has some liability. After the analysis, the IRS goes for the refund process. This can be either a direct deposit to your business’ bank account or through a cheque. You can pick the options as your comfort.

Moreover, the IRS will also let you know about any additional taxes through mail.

Handling Issues with Your Return

If there is an issue with your tax return. You need to handle these properly while staying in the legal sphere. These can be regarding incorrect deductions, some missing forms, or any other need. IRS will notify you through mail along with the necessary information.

This depends on the nature of the issue and can be as simple as needing the remaining form and worse as calling for the need for an audit. The audit can be any of the two ways i.e., in person or through mail; either way, it requires cooperation.

Moreover, an audit can come in without any substantial reasons but rather routine.

Basic Concepts About Their Process

This is where the next step ends. But there is more to understand this. You need to understand these terms:

Different Tax Statuses

Your tax filing goes through different statuses and you need to understand them. These include:

  • Accepted. Just as your filing reaches the IRS, this status is labeled as accepted
  • Pending. As the IRS accesses your filing, it is labeled as pending
  • Approved. This happens as the IRS accepts your tax filing
  • Rejected. If the IRS found some errors and rejected the filing

To understand the process and your filing, you need to understand these.

Possible Duration for Status

Normally analysis begins during 3 to 21 days. During this time, you need to keep an eye on the status. If you do not see it change to pending during this time, it is better to call the IRS on their hotline i.e., 800-829-4933, or visit their office.

Hire and Consulting Experts

Tax filing is significant for the running of your business. Thus, we advise you to hire and consult tax experts. These individuals can solve your related issues and equip your business with success. You can contact us for this as well. We offer tax planning services along with others.

Conclusion

Tax filing is important but in addition to that, the next too is vital. It concerns various aspects of business’ legal standings. While a normal tax filing results in tax returns. It can also lead to various problems. Understanding the background process of the next step can help you understand the possible problems regarding faulty filing. The article discusses this process along with the basic concepts regarding the next step.