Tax professionals should alert their clients that a new law requires the IRS to hold refunds until mid-February 2017 for people claiming the Earned Income Tax Credit or the Additional Child Tax Credit.
In addition, new identity theft and refund fraud safeguards put in place by the IRS and the states may mean some tax returns and refunds face additional review.
This is an important change as some of these taxpayers are used to getting an early refund. 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.
IRS Commissioner John Koskinen
The IRS will accept and processing tax returns once the filing season begins just like normal and will probably be finished within the normal time frame.
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