For those taxpayers qualifying for the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC) the long wait is (almost) over!
Due to new legislation intended to reduce fraud - the PATH Act - the IRS was directed to not issue tax refunds to those taxpayers qualifying for the EITC or the CTC until after February 15th. While many taxpayers have already filed their forms in anticipation of these refundable credits, they have been placed in a holding pattern due to the new legislation.
Now that the February 15th date has passed, the IRS may begin issuing those refunds. Our source at the Liberty Tax national office tells us the IRS has begun issuing refunds and taxpayers may begin seeing them in their bank accounts as early as this Tuesday, February 21. However, the 15th was merely a starting point. There is an expected backlog of returns that will not be immediately processed.
Find out what's happening in Germantownfor free with the latest updates from Patch.
In follow up to last week's post, it appears that filings have picked up and the year-over-year drop off through February 10th is now down about 18% - down from 27% on January 27 - so it appears things are picking up. While this Monday, President's Day, is a national holiday, the IRS and Liberty Tax in Germantown will remain open in anticipation of taxpayers who waited for the PATH Act hold-date to pass. To accommodate this later filing crowd, Liberty's $50 "Cash in a Flash" promotion has been extended through February 28.
