Have you or anyone in your family filed the Earned Income Tax Credit (EITC) and/or the Additional Child Tax Credit (CTC)? If so, the information in this post is crucial for you for the next tax year.
In 2017, taxpayers will have to wait until February 15 to get their tax refunds if they filed the Earned Income Tax Credit and Additional Child Tax Credit. The IRS signed the “Protecting Americans from Tax Hikes” Act in December, 2015, and part of that Act states that taxpayers who filed the EITC and/or the CTC will have to wait to receive their tax refund.
This longer wait for honest taxpayers is due to the increase in tax and identity fraud that the IRS faces every year. In 2014 alone, the IRS estimates that it paid $3.1 billion in fraudulent returns. In order to stop fraud, the IRS plans to be ahead of the scammers in order to give honest, hardworking taxpayers what they are owed. Unfortunately, this also means that families have to wait a little bit longer to receive their tax refunds.
Will you and your family be affected by this law? It is important to know IRS laws in advance in order to be prepared. We can help you minimize tax and file returns in a timely fashion so that you are well prepared for this tax season. Don’t hesitate to contact us early this tax season!