Many Georgia working parents receive a refund after they file their tax returns due to overwithholding as well as claims for the Earned Income Tax Credit and the Additional Child Tax Credit. In expectation of their refund, some families file their tax forms early in January so that they can receive the anticipated funds as soon as possible.
This coming tax season, people who claim the EITC or the ACTC will not receive their refunds any earlier than Feb. 15. The Internal Revenue Service will be delaying the issuance of tax refund checks even for those who file as early as Jan. 1. People who claim the EITC or the ACTC will have to wait for their entire refund, not just the part of the refund that is from the EITC or the ACTC.
The change to tax refund issuance is part of an effort by the IRS to cut down on lost revenue from refund fraud and identity theft. The change is also part of the Protecting Americans from Tax Hikes Act of 2015 that was enacted in December of last year The IRS says that most tax refunds will still be issued in under 21 days, but the tax forms claiming the EITC or the ACTC that are submitted early will be held until Feb. 15.
For people who earn enough money to incur a tax bill, tax season can be a difficult time financially. When they have a tax bill that they cannot afford to pay, the IRS could place liens and seize assets. An attorney may be able to help a person to reach a settlement with the IRS over past due tax debts.