IRS Announces that Some Income Tax Refunds Won’t Go out Until February 15, 2017
For many taxpayers, the new year is a signal that they should start preparing their tax filings so that they can be submitted as early as possible. However, at least some taxpayers may wonder why other taxpayers are in such a hurry to file their taxes when they technically have until April to file. Other taxpayers who file for an automatic extension of time to file taxes may be even more perplexed by some taxpayer’s decision to file their taxes as early as possible. However, there are extremely good reasons to motivate a taxpayer to file their taxes as soon as practicable.
That said, taxpayers who file early this year may run into certain delays regarding the issuance of their tax refund if they make certain tax deduction or exemption claims. Thus, if you plan to file your taxes early or take a more leisurely approach, it is important to understand the process and timelines you face. Taking this initial step can avoid anxiety and uncertainty caused by a delayed refund check. Furthermore, understanding the tax filing timeline can help you avoid accidental noncompliance with your tax filing obligations. The Sacramento tax return attorneys of NewPoint Law Group can provide on-point guidance regarding an array of tax concerns. To schedule a confidential consultation, call our Folsom or Roseville law offices today at 1-800-358-0305.
Why Would Taxpayers File Their Taxes as Early as Possible?
While one cannot make a blanket statement regarding the motivation of all early tax filers, there are certain motivating reasons that are more common than others. To start with, the most common reasons regarding why people file their taxes early is probably related to the fact that the only way to receive one’s tax refund is to file taxes. In other words, if you paid too much in taxes and fail to file your income tax return, the IRS gets to keep your money. Typically, claims for a tax refund must be made within three years of the original due date or the funds will be lost forever. Thus, it logically follows that the earlier one files, the earlier their refund will be received.
Other reasons why taxpayers may be well-served by paying their taxes early include:
- The taxpayer will have more time to pay down a tax balance and avoid penalties and interest.
- The taxpayer needs to obtain certain financial information or needs to have certain financial records available for a transaction. For instance, you may be seeking a mortgage or taking out student loans.
- Taxpayers who file their taxes early are less likely to fall victim to stolen identity tax return fraud.
The tax attorneys at NewPoint Law Group can inform clients and potential clients of the benefits of filing one’s taxes as early as possible.
Why Might My 2017 Tax Refund Be Delayed?
For taxpayers who rush to file as soon as they get the chance, there could be some bad news if you expect to receive your tax refund. If you made claims for certain tax benefits, your refund will not arrive until mid-February. In particular, taxpayers who claimed the Earned Income Tax Credit or the Additional Child Tax Credit will have their tax refund delayed. The first day they could possibly receive the refund is February 15, 2017. If you do not make claims for these tax benefits, the IRS states that your refund should be issued within 21 days.
However, the reason for this tax refund delay is a good one. This delay is one of the new measures implemented by the IRS to protect taxpayers from fraud. That said, taxpayers who wait until the last minute to file will not have to worry about the delay to February, but they may nevertheless encounter additional delays brought on by the last-minute deluge of filings coupled with additional new fraud reduction and elimination procedures. Therefore, taxpayers are still encouraged to file their taxes as early as possible.
Put Our Sacramento Tax Lawyers to Work for You in California
At NewPoint Law Group, our Sacramento tax attorneys are committed to advocating for our clients so that they can achieve a favorable tax result. We can also work to take the stress and anxiety out of your tax compliance efforts. To schedule a confidential consultation and discuss your tax concerns, call 1-800-358-0305 today.