Many PA residents are asking themselves “Where is my PA tax refund?”
In our March 15, 2016 blog, we explained how taxpayers can check on the status of their IRS, PA, NJ and DE income tax refunds. The PA Department of Revenue (DOR), concerned about identify theft, has developed a complex algorithm to minimize the likelihood of refunds being paid to scammers. While the PA DOR will not make public its algorithm, it recently shared why some refunds are delayed.
Reasons cited by the PA DOR included:
· Taxpayer’s return shows a new address from that used in prior years.
· The taxpayer has historically requested that a refund check be issued, and has requested a direct deposit of the refund in the current year.
· A new bank account is used this year than that used in prior years.
· The taxpayer has requested that the refund be made in the form of a debit card.
If anyone has been reading news articles about how identity theft scammers work the system, the above checks by the PA DOR make sense in that these fit the methods used by ID theft scammers.
If a taxpayer is habitually receiving significant PA personal income tax refunds, he should meet with his tax professional and make sure that only the minimum amount (the amount paid to avoid underpayment penalties) of PA taxes are being paid during the year.
If the taxpayer makes estimated tax payments to PA, an alternative to requesting a refund is to instruct PA to credit the overpayment to next year’s estimated tax payments.
If you want to discuss your business or personal tax planning and tax preparation concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.
