If that’s the case, here are three ways to effectively speed up your tax refund:
1. Ask the IRS to use the excess to cover payroll taxes. That way, you don’t have to wait to receive a refund from your tax filing. Caution: If you redesignate income tax payments, you could be liable for penalties if you subsequently end up owing income tax.
2. File for a refund before you file your return. This special option is available only to corporations that overpaid their income tax by at least $500.
3. Carry back a net operating loss (NOL). The loss can offset tax liability in the two previous years and provide an immediate refund. Alternatively, you can use the NOL in a future year if you expect profits to soar. Downside: If you take this approach, you must wait until you file your return for the profitable year to collect the tax benefit.