The Protecting Americans from Tax Hikes (PATH) Act is a tax law passed in 2015 that has a provision requiring the IRS to hold many taxpayers’ refunds until February 15th in order to verify their information and prevent fraud. This will impact returns claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC). Approximately 30 million taxpayers claim the EITC or ACTC.
The PATH Act contains provisions to help combat tax fraud. Holding tax refunds gives the IRS extra time to match wages and withholding information reported by employers and taxpayers. This extra verification process may cause some tax refunds to be held until late February.
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