Last year more than 171,000 fraudulent tax returns were filed. Due to new laws regarding tax fraud, the IRS prevented these refunds from being paid, saving taxpayers about $1.1 billion.
New additions to tax law, beginning Jan. 1, 2017, will effect tax returns that are deemed eligible for the earned income and additional child tax credits.
Households that file early and claim these credits will see a delay on their refunds until after Feb. 15, 2017. This will give the IRS more time to review tax returns and prevent fraud-related or falsified tax returns. This does not mean that households who qualify for these credits should delay filing a return until after this deadline.
The IRS accepts and immediately processes returns once they are filed. While refunds related to earned income and additional child tax credits may be delayed, these returns will be issued immediately after the Feb. 15 deadline in the order that they were received.
Soldiers who were deployed during 2016, are one group that may be affected under this new law and the Fort Bragg Tax Center would like all individuals affected by this new law to be aware of the changes for planning purposes.
The experts at the Fort Bragg Tax Center, located on the 6th floor of the Soldier Support Center, will be able to answer any questions related to these changes in tax law. Please call 396-8299 if you have questions.
This not only affects Fort Bragg clients, it affects all taxpayers world-wide regardless of where they file their return.