“Will my refund be delayed this year” is becoming an all too common refrain these days. Delayed e-filing dates, IRS not accepting tax forms & documents not being mailed out on time have all occurred over the last few years and have caused refund delays. However for the 2017 tax filing season (2016 tax year), it looks like we will get hit with all three of these scenarios at once:
Electronic Filing Start Date
Electronic filing has historically began around January 15th. However, over the past few years, these dates have been pushed back from a couple of days to a couple of weeks. This year is notable because as of time of this writing, the IRS has not even formally announced a beginning date to electronic filing! A commencement date is usually announced weeks if not months earlier. Therefore, it is a good bet to expect electronic filing to begin after 1/15 this year. We will post the official start date once the IRS releases it.
IRS Delaying Processing of Popular Tax Credits
The IRS has announced that the following tax credit forms will not be accepted for processing until February 15th, 2017:
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC)
- Additional Child Tax Credit (ACTC)
- The American Opportunity Credit (AOTC).
This is a nationwide law change required by Congress in the Protecting Americans from Tax Hikes (PATH) Act; this is not a company or state change. If you normally file your taxes around this time (2/15/17), this delay should have a minimal impact on you. However, if you tend to file early and/or have plans for your tax refund in advance, R&G Brenner suggests that you prepare yourself accordingly. For example: if you rely on your refund for critical services (rent, utilities, etc), we suggest that you save some funds to carry you through any potential delays.
IRS Delays Form 1095 Distribution Deadline
The original deadline for distributing Form 1095-B and Form 1095-C to individuals was January 31, 2017. The new deadline is March 2, 2017. The extension provides Applicable Large Employers (ALEs), self-insured group health plans, and health insurance carriers more time to populate and distribute the forms. Since a final tax return cannot be filed without these health care related reporting, this too may delay the filing of your return and receipt of your refund.
These delays will affect taxpayers who claim popular credits & professional tax preparers the most as it may create a backlog and crush of appointments later on in the year. R&G Brenner suggests that you bring with you all supporting documentation for the above tax credits which will allow for the accurate preparation of your return and help minimize any potential delays.
If you have any additional questions about this or anything else, please feel free to contact an R&G Brenner professional via the web, or by calling us toll free: (888) APRIL-15.