Understanding Tax Refunds and IRS Updates

What is one of the main challenges people face when trying to get a tax refund?

• Choosing the right bank

• Filing taxes electronically

• Calculating the correct refund amount

• Understanding the refund process

How much has the average refund amount increased from 2024 to 2025?

• 20.3%

• 18.6%

• 15.2%

• 10.5%

What is the expected processing time for electronically filed tax returns?

• 14 days

• 30 days

• 21 days

• 45 days

Which tax credits require extra verification, potentially delaying refunds?

• Retirement Savings Contributions Credit

• Child Tax Credit

• Earned Income Tax Credit and Additional Child Tax Credit

• Education Tax Credit

What does IRS transcript code 570 indicate?

• Refund issued

• Refund cancelled

• Refund on hold for review

• Refund adjusted

If you receive a CP05 notice, what is the IRS doing?

• Cancelling your refund

• Requesting additional documents

• Reviewing your tax return for accuracy

• Issuing your refund

What should you do if you receive a 12C letter from the IRS?

• Respond within 20 days

• Contact a tax professional immediately

• Ignore it

• Wait for another notice

What does IRS code 841 mean?

• Refund cancelled

• Refund adjusted

• Refund issued

• Refund on hold

What is a recommended step to prevent refund delays?

• Checking your Social Security earnings record

• Filing taxes late

• Using a paper return

• Ignoring IRS notices

What should you bring if you need to verify your identity at an IRS office?

• Only your W2 form

• Just your Social Security card

• A photo ID, Social Security card, and tax documents

• Only your tax return