ABA Tax Accounting — The Internal
Revenue Service said today that it successfully started accepting and
processing 2016 federal individual income tax returns on schedule. More than
153 million returns are expected to be filed this year.
People have until Tuesday, April 18, 2017 to file
their 2016 returns and pay any taxes due. The deadline is later this year due
to several factors. The usual April 15 deadline falls on Saturday this year,
which would normally give taxpayers until at least the following Monday. However,
Emancipation Day, a D.C. holiday, is observed on Monday, April 17, giving
taxpayers nationwide an additional day to file. By law, D.C. holidays impact
tax deadlines for everyone in the same way federal holidays do. Taxpayers
requesting an extension will have until Monday, Oct. 16, 2017 to file.
The IRS expects more than 70 percent of taxpayers to
get tax refunds this year. Last year, 111 million refunds were issued, with an
average refund of $2,860.
Refund Delays - A law change now requires the IRS to
hold refunds on tax returns claiming the Earned Income Tax Credit (EITC) or
Additional Child Tax Credit (ACTC) until Feb. 15. Under this change required by
the Protecting Americans from Tax Hikes (PATH) Act, the IRS must hold the
entire refund — even the portion not associated with the EITC and ACTC. Even though
the IRS will begin releasing EITC and ACTC refunds on Feb. 15, many early
filers will still not have actual access to their refunds until the week of
Feb. 27. The additional delay is due to several factors, including weekends,
the Presidents Day holiday and the time banks often need to process direct
deposits.
This law change gives the IRS more time to detect
and prevent fraud. Beyond the EITC and ACTC refunds and the additional security
safeguards, the IRS anticipates issuing more than nine out of 10 refunds in
less than 21 days. However, it’s possible a particular return may require
additional review and take longer. Taxpayers are reminded that state tax
agencies have their own refund processing timeframes that vary, and some states
may make additional reviews to ensure their refunds are being issued properly.
Even so, taxpayers should file as usual, and tax return preparers should submit
returns as they normally do.
New AGI requirement for e-file - All taxpayers
should keep a copy of their tax return. Beginning in 2017, taxpayers using a
tax filing software product for the first time may need their Adjusted Gross
Income (AGI) amount from their prior-year tax return to verify their identity.
Taxpayers can learn more about how to verify their identity and electronically
sign tax returns at Validating Your Electronically Filed Tax Return.
If you would like to schedule a Free Initial Consultation to
learn more about the tax preparation and tax planning & compliance services
we offer to businesses and individuals, send us an e-mail or call Amare Berhie
today at 651-300-4777 to schedule a convenient time.
Amare Berhie, Senior Accountant
CEO, ABA Tax Accounting
651-300-4777
We are
licensed in All States. We are affordable, experienced, and friendly. We are an
Authorized IRS e-file Service Provider.
