When Will IRS Lift Path

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When Will IRS Lift Path

The IRS (Internal Revenue Service) has implemented the PATH (Protecting Americans from Tax Hikes) Act in order to prevent tax fraud and identity theft. The act requires the IRS to withhold refunds for taxpayers who claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until mid-February. This delay allows the IRS to verify the accuracy of these claims and ensure that taxpayers are not taking advantage of the system. However, many taxpayers are curious about when the IRS will lift the PATH and release their refunds.

The PATH Act was introduced in 2015 and has been in effect since then. The IRS lifts the PATH Act restrictions each year after it has completed certain security checks and reviews. These reviews are necessary to ensure that taxpayers are not falsely claiming the EITC or ACTC. The IRS typically lifts the PATH Act restrictions and begins releasing refunds in late February or early March.

FAQs:

1. Why does the IRS delay refunds for EITC and ACTC claimants?
The IRS delays refunds for EITC and ACTC claimants to prevent fraudulent claims and protect taxpayers from identity theft.

2. How does the PATH Act benefit taxpayers?
The PATH Act helps ensure that taxpayers who qualify for the EITC and ACTC receive the refunds they are entitled to, while also deterring fraudulent claims.

3. When will the IRS lift the PATH Act restrictions?
The IRS typically lifts the PATH Act restrictions and starts releasing refunds in late February or early March, once security checks and reviews have been completed.

4. Can I still file my tax return early if I am eligible for EITC or ACTC?
Yes, you can still file your tax return early if you are eligible for EITC or ACTC. However, your refund will be delayed until the PATH Act restrictions are lifted.

5. How long does it take for the IRS to process refunds after the PATH Act restrictions are lifted?
Once the PATH Act restrictions are lifted, it typically takes the IRS about 21 days to process and issue refunds.

6. Are there any exceptions to the PATH Act restrictions?
In some cases, the IRS may hold refunds for taxpayers who have certain filing issues, such as incomplete or incorrect information on their tax returns.

7. Can I check the status of my refund during the PATH Act period?
Yes, you can check the status of your refund using the “Where’s My Refund?” tool on the IRS website. However, the tool will only provide limited information until the PATH Act restrictions are lifted.

8. What can I do if my refund is delayed due to the PATH Act?
If your refund is delayed due to the PATH Act, there is not much you can do other than wait. The IRS processes refunds in the order they are received, and the delay is necessary to ensure the accuracy of EITC and ACTC claims.

In conclusion, the IRS lifts the PATH Act restrictions each year in late February or early March after completing security checks and reviews. This delay in refund release is necessary to prevent tax fraud and protect taxpayers from identity theft. Taxpayers who claim the EITC or ACTC can still file their tax returns early, but their refunds will be held until the PATH Act restrictions are lifted. It typically takes the IRS about 21 days to process and issue refunds after the restrictions are lifted. Taxpayers can check the status of their refunds using the “Where’s My Refund?” tool on the IRS website, but limited information will be provided until the PATH Act restrictions are lifted. If your refund is delayed, it is important to be patient and wait for the IRS to complete the necessary reviews and security checks to ensure the accuracy of your claim.
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