Due to a new law aimed at reducing identity theft and fraud, taxpayers claiming the earned-income tax credit will have to wait several weeks longer to receive their federal income tax refunds. This new law primarily impacts affects the low and moderate-income taxpayers.
The IRS will now hold any refunds from tax returns that claim an earned-income credit until at least February 15. The IRS also says that due to the timing of weekends and President's day, most filers will not receive their refund until February 27.
This new change is a direct results of the Protect Americans From Tax Hikes (PATH) Act of 2015. The PATH Act permits the IRS to verify claims for tax credits.
If you plan to claim the earned-income tax credit, you should anticipate receiving your refund later than normal. To lower your chance of identity theft and to receive the refund you are entitled as soon as possible, contact us today to get your taxes prepared.