The Internal Revenue Service (IRS) has issued a reminder that it will be delaying refunds for taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). The delay is meant to give the IRS more time to detect fraudulent tax refunds, which have become a growing problem in recent years.
The IRS will put holds on all refunds for which the taxpayer is claiming the EITC or the ACTC until February 15 or later. It is important to note that even if the taxpayer has a refund of which the EITC or ACTC is only a part, the entire refund will be held.
”This is an important change as some of these taxpayers are used to getting an early refund,” said IRS Commissioner John Koskinen. “We want people to be aware of the change for their planning purposes during the holidays. We don’t want anyone caught by surprise if they get their refund a few weeks later than in previous years.”
If you have questions about how this delay could affect your tax planning, please contact us. You can read more in the full press release from the IRS.