Dear Liz: I’ve heard too many delayed refund stories to trust the process, so I always request that my overpayment be applied to the following year’s taxes, which allows me to stop withholding on IRA required minimum distributions via Form W-4R and stop making estimated tax payments until I’ve “used up” the amount of my refund. When I was administrator of a loved one’s estate, it took the IRS nearly two years to issue a refund, and that was before government cuts under Department of Government Efficiency (DOGE).
Answer: Your approach is one often recommended by tax pros, who have their own stories of trying to wrestle refunds out of an agency hollowed out by budget cuts and layoffs. You can still face problems if the IRS delays or fails to apply your overpayment as requested.
Also, the choice generally can’t be reversed. Make sure you won’t need the money and that you’ve paid enough to avoid underpayment penalties.
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