A law passed by Congress last year requiring additional checks on tax filers who claim the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit has officials at the IRS on alert.
According to an article published by Forbes Magazine, The law will have some tax refunds delayed due to a bill Congres passed last year which requires the IRS to hold refunds tied to the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until February 15.
"The hold allows IRS to match information from forms W-2 and 1099 with information reported on tax returns; in prior years, refunds could be issued before forms were matched which increased the likelihood of fraud," the Forbes article said.
With the expected IRS hold on the tax return, bank processing time, and bank holidays a tax return should not be expected until late February.
"The IRS expects more than 70% of taxpayers to receive tax refunds this year. Last year, 111 million refunds were issued, with an average refund of $2,860. The IRS believes the numbers for 2017 will be similar" according to the Forbes article.
"Like last year, the IRS anticipates issuing more than nine out of 10 refunds in less than 21 days. However, with additional levels of the review aimed at reducing tax-related identity theft and refund fraud, there could be individual delays".
**ARTICLE CREDIT:** Kelly Phillips Erb, FORBES