"Plan ahead: #IRS will not issue refunds on tax returns claiming #EITC or #ACTC credits before Feb. 15," according to the agency's twitter account @IRSnews.
Plan ahead: #IRS will not issue refunds on tax returns claiming #EITC or #ACTC credits before Feb. 15. https://t.co/oq9gzXB65O #GetReady
— IRS (@IRSnews) 8 января 2017 г.
The reason behind the delay is that identity theft schemes have become more sophisticated, according to IRS commissioner John Koskinen.
"We're talking about international organized crime syndicates," Koskinen said in an interview for Associated Press.
According to agency reports, 2014 saw $3.1 billion in fraudulent payments, and $5.8 billion the previous year.
However, the agency says it was able to prevent some $47 billion in fraudulent payments. IRS reports that new measures taken against criminals have resulted in a "50 percent decline in the number of new reports of stolen identities on federal tax returns" in 2016.
The IRS provides refunds for anyone claiming the earned income tax credit (EITC) or the additional child tax credit (ACTC), and most low-income families can claim both.
"For many people, this is the biggest check they see all year," Koskinen wrote on the agency's website. "We are sensitive to that."
Some $99 billion were paid in refunds in 2014, according to agency reports.
Despite the delay, the agency urges taxpayers to file as they normally would, including returns claiming EITCs or ACTCs.
Koskinen also warned the taxpayers that the refunds will not start be available in their bank accounts until the week of February 27.
