57 - Could a New Law Delay Your Tax Refund If You File Early?

A new law to help combat tax fraud may delay millions of income tax refunds this upcoming tax season. The law, called the PATH Act, requires the IRS to hold refunds of taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit until at least Feb. 15.

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Tax ID theft continues to rise. According to IRS data, since 2013, approximately 5.1 million people have been victims of tax identity theft fraud. Criminals use personal information to file fake returns and steal taxpayer refunds. This can be very challenging for victims…losing access to their refund for approximately 180 days and having to take multiple steps to regain their identity with the IRS.

 

Plus, anyone who hasn’t enrolled in health care insurance can face a steeper penalty on their 2016 tax return.

 

Kathy Pickering, a tax expert with H&R Block discusses:

 

• What the PATH act means for tax filers in 2017
• Consumer safeguards against tax identity theft fraud
• Penalties for taxpayers without health insurance & how to avoid being penalized if you don’t have insurance
• Tax tips you can make now to save when you file for the 2017 season

 

 About Kathy

Kathy Pickering is the executive director of The Tax Institute at H&R Block, the go-to source for objective insights on federal and state tax laws affecting the individual. With more than a decade of experience in tax operations and 25 years in information technology, Pickering is responsible for the strategic direction and management for a team of the nation’s top experts on tax issues. As head of The Tax Institute, Pickering oversees enrolled agents, CPAs and attorneys who provide information and analysis on the real-world implications of tax policy and tax proposals.

 

For more information about this episode, visit http://blogs.hrblock.com/2016/10/11/path-act/