Your Tax Refund May Be Delayed
Some taxpayer's refunds may be delayed this year. To make matters worse, the refunds in question are those of the people who need the money worst.
The Associated Press reports refunds to people claiming the earned income credit and additional child credit will see their refunds delayed while the IRS tries to prevent identity theft. The problem is apparently quite severe, involving organized crime. Syndicates file false returns claiming the tax credit. IRS representatives say $3.1 billion in fraudulent refunds were issued in 2014.
This has prompted partnerships between the IRS, and major tax preparation services like H & R Block, and Jackson Hewitt. Filing season begins January 23rd. Officials say people claiming EIC who file right away won't likely see their refunds until late February.
As if loaning the government interest free money weren't bad enough. They're going to be late paying it back.