What Sort of Delays Can We Expect for 2017 Tax Refunds

The IRS is working to reduce tax fraud, which will result in some refunds being delayed. The delays are said to affect mainly those claiming the Earned Income Tax Credit (EITC/EIC) and Additional Child Tax Credit (ACTC). If neither of these situations applies to you, no delay should be experienced.

Electronically Filed Returns

Even if you file your tax return electronically, if you are claiming either the EITC/EIC or ACTC, you may experience a delay due to increased verifying procedures. The IRS must now verify every return down to the penny that is claiming either of these credits.

Special Deductions & Credits

If you are filing early and claim either the EITC/EIC or ACTC, your refund is likely to be delayed slightly this year. The IRS has to verify that you can receive any funds remaining after claiming the regular Child Tax Credit, which would result in you potentially being eligible for the Additional Child Tax Credit.

Paper Filers

Paper filers may experience normal delays, due to mail delivery processes. It is actually a better option to file online as it is virtually impossible for your return to get lost using this method. It typically takes paper filers longer to complete their returns too.

Closing Thoughts

The IRS is still expecting to process returns within 21 days, but some refunds may not be issued until February 15, 2017 for those that file early. Given the fact that Americans are more aware of credits and deductions, the size of the average tax refund has increased. This has prompted the IRS to look closer at returns to find additional cases of tax fraud.

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