My Tax Refund Is Late. Does That Mean I'm Getting Audited?

Many people wait until the very last minute to file their taxes. But there's a big benefit to getting your tax return done early -- having your refund hit your bank account sooner.

But what if you submitted your taxes weeks ago and haven't seen that money hit yet? At first, you may be inclined to assume the worst -- that the IRS has decided to audit your tax return. But in reality, there may be a very simple -- and much less stressful -- explanation.

Don't assume the worst

The IRS will withhold your refund if it feels it needs to dig deeper into your tax return. But that's not the only reason you may be experiencing a delay with your refund.

It could be that your refund is simply lost in the mail if you're expecting a paper check. And if you signed up for direct deposit, it could be that you accidentally entered the wrong banking details when you filed your tax return.

Another reason not to jump to the conclusion that a late refund means an audit is in your future? Audit rates have been very low in recent years.

And even though the IRS was recently awarded extra funding through the Inflation Reduction Act to ramp up on audits, the agency is focusing on high-income individuals and corporations in expanding its audit practices. If you're a typical taxpayer with an average wage, your chances of getting audited may not go up at all this year or in the coming years.

Just how low has the overall audit rate been? According to the U.S. Government Accountability Office, in 2019, the last year for which there's data available, the audit rate was just 0.25% of all returns. And while audit rates were notably higher for earners with incomes of $500,000 or more, they were lower for filers with incomes between $25,000 and $499,999. So if you earn, say, $100,000, your chances of getting audited are pretty low.

Check up on your refund to see what's going on

There's no need to stress about the reason your tax refund is delayed when you may be able to get an answer by using the IRS's "Where's My Refund" tool. All you need to do is put in your Social Security number, tax-filing status, and refund amount, and the IRS should be able to provide you with an update.

If you see that your refund is being processed, it's a good sign. And even if you see that there's an issue with your tax return and you're being advised to call the IRS, don't panic. It may just be that the agency needs to verify some information before it can process your refund and send that money your way.

Of course, if you're really worried about getting audited, one question you may want to ask yourself is, "Was I truthful and accurate on my tax return?" If the answer is yes, then chances are, your money is going to show up sooner rather than later, and you're not going to have to deal with an audit at all.