On December 18, 2015 Congress passed a bill that will impact 30 million taxpayers and the tax professionals who prepare their returns. The PATH Act (Protecting Americans from Tax Hikes) creates a law that prohibits the IRS from releasing refunds for taxpayers claiming Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTC) prior to Feb. 15, 2017.
The Impact to Tax payers:
– Over 30 Million taxpayers impacted
– Over $100 Billion in refunds delayed
This legislation will create funding delays of up to six weeks or more for taxpayers filing at the beginning of the tax season. Our firm and vendor recognize that these funding delays may negatively impact necessary cash flow for taxpayers and tax professionals, and are prepared to help our clients with products/services that will bridge the gap between filing and funding.