The Internal Revenue Service has announced initial plans for processing tax returns involving the Earned Income Tax Credit and Additional Child Tax Credit during the opening weeks of the 2017 filing season. The IRS is sharing the information now to help the tax community prepare for the 2017 season, and plans are being made for a wider communication effort this summer and fall to alert taxpayers about the changes that will affect some early filers.

The action is driven by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that was enacted December 18, 2015, and made several changes to the tax law to benefit taxpayers and their families. Section 201 of this new law mandates that no credit or refund for an overpayment  for a taxable year shall be made before February 15 if the taxpayer claimed the Earned Income Tax Credit or Additional Child Tax Credit on the return.

The change begins January 1, 2017 and may affect some returns filed early in 2017. For additional information, see the link below:

https://www.irs.gov/for-tax-pros/new-federal-tax-law-may-affect-some-refunds-filed-in-early-2017