Tax Updates (2017)

In December, the IRS announced tax season will start Monday, Jan. 23, 2017, and will begin accepting electronic tax returns that day. More than 153 million individual tax returns are expected to be filed in 2017.

As a result of the sheer volume of returns and several other factors, the IRS reminded taxpayers claiming certain tax credits to expect a longer wait for refunds. The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors that the IRS recommends keeping in mind for taxpayers.

Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund.

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. This change helps ensure that taxpayers get the refund they are owed by giving the IRS 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, and tax return preparers should also submit returns as they normally do – including returns claiming EITC and ACTC.