This change begins Jan. 1, 2017, and may affect some returns filed in January and early February 2017.
• The IRS will hold the refunds on EITC and ACTC-related returns until Feb. 15.
• This allows additional time to help prevent revenue lost due to identity theft and refund fraud related to fabricated wages and withholdings.
• The IRS will hold the entire refund. Under the new law, the IRS cannot release the part of the refund that is not associated with the EITC and ACTC.
• Taxpayers should file as they normally do, and tax return preparers should also submit returns as they normally do.
• The IRS will begin accepting and processing tax returns once the filing season begins, however there will be holds on EITC and ACTC.
The IRS still expects to issue most refunds in less than 21 days, though IRS will hold refunds for EITC and ACTC-related tax returns filed early in 2017 until Feb. 15 and then begin issuing them.