If you haven’t received your tax refund as of today, it means you are doing something wrong, or very wrong…
Of course, you can always speak with a great tax refund specialist on this website’s chat to obtain your Income Tax Refund (ISR by its acronym in Spanish) quickly and without complications.However, if you prefer to file your tax return personally, you should consider different aspects. Here at BCG Tax Experts, we tell you what the main ones are.
Here’s what may be happening with your annual tax return if the tax authority has not yet deposited your balance in your favor:
1. You still have pending submitting annual or tax installments from previous years, different from the one for which you are requesting your refund.
In other words, if you are trying to get your tax refund for the year 2023, but you haven’t filed the annual tax return for 2022 or even for the year 2021, or perhaps even for up to 5 years ago, the tax authority has valid reasons to deny your deposit. What you should do first is regularize your situation.
2. You have inconsistencies in your annual tax return.
This is typical for many clients and taxpayers, and we dare say that 90% of refund denials fall into this category. A very common example is having receipts for personal deductions totaling $100 but stating expenses of $150 in your tax return. Therefore, there’s a 100% chance that the tax authority will ask, “What is the reason for this $50 difference?” Trust us, you don’t want to be in this situation…
There’s a common expression among accountants called “tie-up.” This means that before you submit your annual tax return, you must “tie up” the invoices given by your suppliers against those you include in your annual tax return.
3. You did not declare 100% of your income.
We must remember that nowadays, banks in Mexico “stamp” the account statements of their account holders, meaning that banking information is rapidly shared with the tax authority. Therefore, you should know that this information is already in the hands of the authority. Sometimes, taxpayers have deposits in their accounts that are not necessarily income subject to tax.
4. Some CFDIs (Digital Tax Invoices) are incorrectly issued, especially those from your employer(s).
If you are an employee, it often happens that your employer did not issue your pay slip correctly or within the required timeframe. We have seen cases where the employer didn’t withhold your Income tax, and therefore, the tax authority denies refunds. Each case is truly unique and is analyzed differently.
5. The bank details you provided do not match those on your bank statement.
This is a very common error and happens too often… Remember, your “CLABE account number” must be 18 digits long and must be in the name of the person filing the annual tax return, this means, in your name as the taxpayer.
6. You were involved in transactions with fake invoicing companies…
Forget it, if you fell into the trap of a charming invoice issuer, and the tax authority has traced who sold you those invoices, no matter the amount of the refund you’re owed, whether small or large, in our vast experience… the tax authority is unlikely to refund anything you’re entitled to.
7. You did not provide additional information requests from the tax authority in a timely manner.
Once you have submitted your annual tax return online, you may receive a couple of questions, don’t be alarmed! It’s normal, however, many people here, due to great fear of being questioned, get discouraged and abandon their refund process (a great technique used by the tax authority for centuries).
If for any reason, you do not provide 100% of the information requested, your refund deposit may be partial.
There are many other reasons why the tax authority may not refund your taxes, but our specialists affirm that the ones discussed above are the most common (and we believe them) …
Among other reasons are 1) your digital tax seals are canceled, 2) you have firm tax credits against you, 3) you selected online an option other than “refund,” such as “compensation,” etc.
Remember that there are only two types of refunds, manual and automatic, and you can only obtain a refund when your annual income tax is less than what you paid provisionally from January to December of the same year.
During this April month, it becomes crucial to continuously check your Tax Mailbox for a faster refund.
