Some Tax Refunds Delayed in 2017 when you File Early

EITC and ACTC Tax Refunds DelayedTax Refund Delays in 2017

Ready and waiting for that tax refund? Of course you are! Don’t get excited yet, some tax refunds delayed in 2017.

Unfortunately, some taxpayers are going to have to wait a little while longer for their tax refunds in 2017. Tax refunds delayed in 2017 might be a shock to those who expect earlier refunds.  If you use the tax refund schedule, slow your roll.  A new fraud protection policy kicks into effect due to a provision in the Protecting Americans from Tax Hikes (PATH) Act of 2015. The IRS is going to delay refunds that involve the Earned Income Tax Credit and Additional Child Tax Credit until February 15th.

EITC and ACTC are the most commonly exploited credits in tax refund theft scams.

The tax refunds of tens of millions of taxpayers are expected to be affected by PATH’s fraud protection provision. In 2015, nearly 30 million taxpayers were recipients of EITC credits to the tune of some $66 billion. In our article about the PATH Act, you can read more about the tax refunds delayed.

Tax refund fraud is surging as criminal organizations around the world seek to defraud the government. It is an attractive venture, as it is fairly low risk compared to other criminal activities. Criminals can commit their crimes from the comfort of their own couches and in some cases, even their jail cells.

In one particular case in PA, Reginald Harris conducted tax fraid from his jail cell and even went so far as to teach other inmates and con artists how to pull off his scam. The most common scam Harris ran involved file a return with false income of less than $1800 with a dependent. The low income meant the nonexistent employer would not have to file a W-2, thus allowing the fraudulent returns to pass unnoticed. Accomplices on the outside would provide him with names and Social Security numbers.

That places a burden on the government to not only stay ahead of the criminal element, but work to prevent repeat offenses. One such measure included the IRS launching a web tool where taxpayers could acquire a six digit pin to include with their return when efiling to show the agency that it was a legitimate return. The tool was shutdown after it was discovered that cybercriminals had compromised it and were using it to file new fraudulent claims.

The good news is that the IRS has caught up to and is gaining ground against would-be tax refund thieves. Five years ago, the IRS was drastically behind. In the 2016 filing season, the IRS with the help of third party partner Security Summit, stopped upwards of 171,000 fraudulent claims valued at nearly $1.1 billion.

Have you been a victim of identity or tax refund theft? Tell us about your experience in the comments!

POST YOUR ACTUAL TAX REFUND EXPERIENCE HERE: This is a “user to user” site and the primary mode of support is peer-to-peer, meaning users helping other users. Admin and moderators are not always present or may not have answers to questions. Users becomes more informed when they are here often to read and comment. We call them Top Contributors. We are not a group of experts, merely individuals who have learned more than we ever wanted to know about the tax refund process.

Leave a Reply

Your email address will not be published.

Comments are moderated according to our comment policy. If your comment is moderated, it may appear shortly, it might not. They are auto-moderated (nothing personal) or removed manually for other reasons. It is not personal or always something you implicitly said. If you are moderated, read How We Moderate Comments (HWMC) before getting upset. If you think comments are being moderated in error or have any questions email IGMR Admin. Comments about how or why comments have been moderated could be removed and considered off-topic.

What Others Are Saying:

  1. Anonymous

        The IRS Accepted my return today which probably still means nothing. Early pass thru of efiles and test runs.

        Reply



        0



        0
      • Anonymous

            I went through this for 4 years with identity thieft. I finally got a break last year because the IRS sent me a pin. It was great to get my taxes on time last year. They have sent me another pin this ear so I hope it will be smooth sailing again. I don’t try to file early because I don’t want to get mixed up in test batches. The way I see it, I’ve waited all year another month isn’t going to hurt me. I just use my for bills that may have gotten behind anyways.

            Reply



            0



            0
          • Anonymous

                A couple of years ago my husband
                s was file fraduently as someone’s spouse in washington and we live in Texas, he is now required to use 6 digit pin. This year someone fraudently used our 2 yr old’s ss number, needless to say i still have not received my refund bit the person that filed her did.

                Reply



                0



                0