Tuesday, January 31, 2017

Delayed refunds


The tax filing season is underway, but a new law requires the IRS to 
delay tax refunds to families claiming the earned income tax credit and the additional child tax credit. 
The delay will mean refunds won’t get out until mid to late February. The IRS needs more time to screen the returns for fraud. The IRS estimates that it issued $3.1 billion in fraudulent tax refunds to identity thieves in 2014. The year before, it paid out $5.8 billion. Over those two years, the IRS says it blocked nearly $47 billion in fraudulent refunds.
International organized crime syndicates have become extremely sophisticated in stealing identity and committing fraud. The sad thing is legitimate refunds end up delayed an average of 30 days or more because of the increased screening.
It is unfortunate that people who might need the refund the most will be delayed in getting it, but with identity theft and fraud being what it is, I can see why the IRS is having to go at this hard to stop the thieves.

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