Want your Tax Refund Quick?
As part of the PATH Act (Protecting Americans from Tax Hikes) of 2015, the IRS is allowed to delay refunds for some to combat fraud. Those who claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) (or both) will have their refund delayed until February 15. There are many people who depend receiving their return to pay off holiday bills and this will not make life any easier for them.
On the other hand, the IRS has a significant burden of its own involving the prevention of tax fraud and wrongful payouts. In 2014, 26 million filers claimed the EITC and 20 million claimed the ACTC. In 2013, 24% of all refunds based on the EITC were mistakenly paid. In the same year 30% of all ACTC claims were paid in mistake as well. In total $21.5 BILLION dollars were paid out wrongly. The violations ranged from a simple mistake of the law to professional misconduct.