2017 Delayed Tax Refunds
Do you have kids and file your return early? Do you receive the Earned Income Credit (EIC) or the Additional Child Tax Credit (ACTC)? If so, you can expect a delay in receiving your refund in 2017.
A new law, the Protecting Americans from Tax Hikes Act, passed December 18, 2015 states that, "no credit or refund for an over-payment for a taxable year shall be made to a taxpayer before February 15 if the taxpayer claimed the EIC or ACTC on the return." This new law is just one measurement that the IRS has made to protect the identity and ensure taxpayers only receive the refund they are owed. This law will become effective January 1, 2017.
So, what does this mean for you? If you have a child under the age of 17 that qualifies you for the ACTC, $1,000.00 credit or if you receive EIC on your tax return you can still file when you have all of your documentation together. However, the IRS will not release your refund, or a partial refund until Feb. 15th. The IRS still stands that they will be honoring the refunds in less than 21 days if you do not have EIC or ACTC on your return.
If you have any additional questions or if you think your return will be effected and you wish to speak with an Enrolled Agent about this, you can call our office at (812)258-4002 ext. 1.
"no credit or refund for an over-payment for a taxable year shall be made to a taxpayer before February 15 if the taxpayer claimed the EIC or ACTC on the return." (2016, August 22) retrieved from https://www.irs.gov/for-tax-pros/new-federal-tax-law-may-affect-some-refunds-filed-in-early-2017
Premier Accounting wants to make sure you are up-to-date on the every changing effects of IRS policies.