Tax Law Changes Delays 2017 refunds
The Protecting Americans From Tax Hikes (PATH) Act contains some expanded Due Diligence requirements. It also mandates a delay in issuing IRS refunds if you claim any of these four credits: Earned Income Tax Credit, American Opportunity Tax Credit, Child Tax Credit, and the Additional Child Tax Credit. The Due Diligence requirements apply to those four credits as well. The IRS now requires the preparer to complete a form 8867 for any taxpayer who qualifies for these credits and to file the 8867 with the tax return. Refunds that include any of these credits will not be issued until sometime after February 15th of 2017, which means the refunds likely won't arrive in bank accounts or debit cards until the week of February 27th. All taxpayers/dependents must have a TIN (social security or other) in order to claim the credits. The IRS now imposes a $510 penalty for failing to meet due diligence requirements. To claim education credits, you must now have the 1098T from the institution.