With many expecting a bigger tax refund this season, there may be an incentive to file returns sooner. But that doesn't mean you should rush to send yours.
First, you'll need all the necessary tax forms, or you could risk processing delays — or worse, experts say.
Every year, employers and financial institutions report your income and other transactions via so-called information returns, such as W-2s and 1099s. A copy goes to you and to the IRS, which makes it easy for the agency's systems to automatically flag missing or incorrect details, experts say.
"We don't know all the things that make an IRS audit happen," said April Walker, senior manager for tax practice and ethics with the American Institute of CPAs. "But one of the best ways to avoid that is to make sure that you are fully and completely reporting everything."
If you have an error or leave details off your return, you could see an automated CP 2000 notice from the IRS, which details what is missing, based on information returns the agency received. The notice also includes the IRS' proposed adjustments, with an opportunity to agree or disagree with the changes.
