Anti-fraud efforts by the IRS lead to 2017 tax delay
2017 Tax Delay imminent for some due to mounting fraud concerns by the IRS.
Some taxpayers will unfortunately be held up during the 2017 Tax Season coming up. We wrote early about the Earned Income and Child Tax Credit delay until February 2017, but there is another potential 2017 Tax Delay by the IRS.
IRS press release said the 2017 tax delays are the result of an anti-fraud rule that will come into action in 2017. The regulation will give the IRS more time to find scammers and put a stop to their tax fraud. The IRS still suggest filing early as a way to guarentee that you will get your 2017 tax refund back early.
“One thing we’ve always told people to avoid being subject to tax fraud is to file as early as you can,” said Tim Steffen, director of financial planning at Robert W. Baird & Co. “With the refund delayed, that’s even more reason to get it in a little sooner.”
“We’ll be focusing on awareness of this change throughout the fall,” said IRS Commissioner John Koskinen in a statement. “But it’s important for taxpayers who might be affected by this to be aware of the change for their planning purposes.”
Over time, the size of refunds has increased, making tax fraud a bonanza for scammers. So far in 2016, the IRS has distributed more than 102 million tax refunds, with the average amount more than $2,700.
Fraudsters are quick to submit fake returns in a bid to get a refund before the actual taxpayer turns in his or her documents. Often there is a large criminal enterprise at work, stealing Social Security numbers, filing the fake returns and collecting the refund, according to the Justice Department.