There WILL be some delays with tax returns in 2017!
When considering refund issues, the IRS wants taxpayers to be aware of several factors that will affect the timing of receiving their tax refunds next year.
A major change will affect some early tax filers claiming two key credits who won’t see their refunds until after Feb. 15.
Beginning in 2017, a new law requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes (PATH) Act, the IRS must hold the ENTIRE refund — even the portion not associated with the EITC and ACTC — until at least Feb. 15 (unless you file early, this could be weeks AFTER Feb. 15). This change helps give the agency more time to help detect and prevent fraud.
As in past years, the IRS will begin accepting and processing tax returns once the filing season begins. All taxpayers should file as usual.. even though the IRS cannot issue refunds for some early filers until at least Feb. 15, the IRS reminds taxpayers that most refunds will still be issued within the normal time frame: 21 days or less, AFTER being accepted for processing by the IRS.
”This is an important change to be aware of for some taxpayers used to getting an early refund,” Koskinen said. “We’ll be focusing on awareness of this change throughout the fall, but it’s important for taxpayers who might be affected by this to be aware of the change for their planning purposes. Although we still expect to issue most refunds within 21 days, we don’t want people caught by surprise if they get their refund a few weeks later than previous years.”
Because of this change Alliance Tax Preparation will be offering a PRE-FUND LOAN ADVANCE (you can get a portion of your refund up to $1250 right away when you file) since the PATH Act will delay federal refunds for up to 6 weeks or more.
More details to come…
If you have any questions prior to that feel free to give us a call.