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New Federal Tax Law

Refunds filed in early 2017 may be affected:

The Internal Revenue Service has announced initial plans for processing tax returns involving the Earned Income Tax Credit and Additional Child Tax Credit during the opening weeks of the 2017 filing season. The IRS is sharing the information now to help the tax community prepare for the 2017 season, and plans are being made for a wider communications effort this summer and fall to alert taxpayers about the changes that will affect some early filers. 

This action is driven by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that was enacted Dec. 18, 2015, and made several changes to the tax law to benefit taxpayers and their families. Section 201 of this new law mandates that no credit or refund for an over-payment for a taxable year shall be made to a taxpayer before Feb. 15 if the taxpayer claimed the Earned Income Tax Credit or Additional Child Tax Credit on the return. This change begins Jan. 1, 2017, and may affect some returns filed early in 2017.

This is one more step the IRS is taking to ensure taxpayers receive the refund they are owed. The IRS plans to work closely with stakeholders and IRS partners to help the public understand this process before they file their tax returns and ensure a smooth transition for this important law change.

More information about this law will be posted to IRS.gov and shared with partners and taxpayers throughout the second half of 2016.

Important Update as of 11/18/16:

The IRS will most likely begin accepting tax returns with no significant delays. However, starting in 2017, refund for certain returns claiming an Earned Income Credit or Additional Child Tax Credit cannot be issued before February 15, 2017.