Some of the measures Congress and the IRS have put in place for the 2017 tax season to reduce identity theft and refund fraud may cause refund delays and/or additional tax return reviews for taxpayers this season.
The Earned Income Tax Credit or the Additional Child Tax Credit
The PATH ACT passed by Congress requires the IRS to hold refunds until at least February 15th if the taxpayers have claimed the Earned Income Tax Credit or the Additional Child Tax Credit. The IRS must hold the entire refund for these taxpayers.
“This is an important change as some of these taxpayers are used to getting an early refund… We don’t want anyone caught by surprise if they get their refund a few weeks later than in previous years.” – IRS Commissioner John Koskinen said
What to do
The IRS advises all taxpayers not to delay their usual filing timeframe because of these changes. Koskinen said, “These increased security screenings are invisible to most taxpayers, but we want people to be aware we are taking additional steps to protect taxpayers from identity theft and that sometimes means the real taxpayers face a slight delay in their refunds.”