IRS Will Hold Tax Refunds Until February 27

Internal Revenue Service said on the press conference this week that the 2017 tax filing season will start on January 23, and IRS expect tax return would be over 153 million this year.

In the conference, IRS also said that the tax refunds this year would be delayed for taxpayers claiming earned income tax credit and additional child tax credit until February 15.

The purpose of the delay was to set enough time for agency to detect fraud. The refunds may not land in the taxpayer’ bank accounts until February 27, and estimated arrival dates for the refund will not be found on the agency’s website until February 15.

For the past few years, IRS processed tax refund efficiently and fast, however, the speed created chance for fraud, even though it helped to narrow the short-term lending market.

During this time, the IRS would match information on the tax returns with that on W-2s form, and it is projected that this action would increase federal revenue by $779 million over ten years.

According to a tax-preparation company, the delay will affect 10% of all individual income-tax returns, or around 15 million households.

John Koskinen, the IRS Commissioner, said in a statement that the total refund was $2,875 in 2015, and agency hopes the amount refund to be similar with that this year.

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