Refunds for Returns with EITC or ACTC Delayed
The PATH Act of 2015 requires the IRS to hold 2016 refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until February 15. The IRS must hold the entire refund even the portion not associated with the EITC and ACTC until at least February 15. The IRS cautions that these refunds likely won’t arrive in bank accounts or debit cards until the week of February 27 if there are no processing issues with the tax return and the taxpayer chose direct deposit.
This will allow the IRS to verify income reported on those returns since employers are now required to file W-2 forms and 1099s by January 31 (previously they had until March).
Most refunds are expected to be issued within 21 days of processing. If the IRS identifies significant mismatches between the income information provided on the return and provided by employers, there can be additional delays as the IRS seeks to resolve the mismatch.
Check on the status of a tax refund through the IRS Where’s My Refund? tool.
