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.
This action is driven by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that was enacted Dec. 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 to a taxpayer before Feb. 15, 2017, if the taxpayer claimed the Earned Income Tax Credit or Additional Child Tax Credit on the return.
IRS Works to Help Taxpayers Affected by ITIN Changes
The new Protecting Americans from Tax Hikes Act (PATH) of 2015 legislation applicable to ITINs takes effect January 1, 2017. It requires ITINs that have not been used at least once in the last three tax years and ITINs with middle digits of 78 or 79 to expire at the end of the year regardless if they have been used in the last three tax years.
Policy on dependent's use of passports as stand-alone ID is also changing on October 1, 2016.