Last year, many consumers received their tax refunds later than expected, so this year your favorite BBB® set out to find out ahead of time if we should expect delays or not. According to the IRS, your money will probably get to you with a small delay and this is why:
The EIC, ACTC, PATH act
The Protecting Americans from Tax Hikes Act, also known as the PATH Act was initiated in 2015 and one of its main goals is to fight tax refund scams. This means that the IRS will take a little more time to examine each tax return, just to make sure that no fraudster is filing taxes in your name and that the refund will go to its rightful owner.
The IRS will also need to take a look at your Earned Income Tax Credit (EITC) or your Additional Child Tax Credit (ACTC). Consumers should expect their refunds to show up no sooner than February 25, 2018, as long as they chose direct deposit.
State refund delays
These delays will not be caused by the PATH Act, some states just take longer to send the refunds. Also, the high increase in ID theft and tax return fraud require that each state pays close attention to their tax process, which can delay everything by days, even weeks.
If a lot of time passes without receiving your tax refund, contact the IRS to make sure no one has claimed your refund in your name.
Also, if you believe you’ve been victimized by a scam, report your experience to bbb.org/Evansville!