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IRS Delays Specific Tax Returns In Order to Detect Fraud

3 years 10 months 3 weeks ago Wednesday, January 11 2017 Jan 11, 2017 January 11, 2017 9:28 PM January 11, 2017 in News

MCALLEN - Thousands of Rio Grande Valley taxpayers might have to wait to get their income tax refunds.

The IRS said they will hold on to some refunds due to the Protecting Americans from Tax Hikes Act, which was put in place to safeguard against tax fraud.

Melisa Galvan said she can’t wait to file her taxes this year.

“It’s already spent because I get loans throughout the year to pay for bills and expenses,” she said. “I have three teenage boys, so it gets kind of pricey to dress them and their activities and stuff like that.”

Alejandro Bermudez is a tax professional in McAllen. He said Galvan will have to wait a little longer to receive the much anticipated refund.

“Anyone who is claiming a refund of either Earned Income Credit or Additional Child Tax Credit will have their refund delayed by the Internal Revenue Service,” he said.

Bermudez said a provision under the law allows the IRS to delay specific returns. The IRS said they will hold on to those refunds until Feb. 15.

Bermudez said both credits are commonly claimed in the Valley.

“An Earned Income Credit is, of course, a credit for working families. You get so much money for working and the more children you have, obviously, the bigger the credit would be,” he said. “Anyone with a child under the age of 17 qualifies for the child tax credit, possibly the additional child tax credit.”

Bermudez said people should be planning to file their income tax as soon as Jan. 23 comes.

“File it as early as possible. At least that way you can get your name in the queue,” he said. “If you wait until Feb. 15, that just means you have to wait now through March to get your refund.”

Galvan said she plans to file as soon as she can.

Link: Protecting Americans from Tax Hikes Act

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