This is the second in a series of reminders to help taxpayers prepare
for the upcoming tax filing season.
WASHINGTON – As tax filing season approaches, the Internal Revenue Service
is reminding taxpayers about steps they can take now to ensure smooth
processing of their 2016 tax return and avoid a delay in getting their tax
refund next year.
The IRS reminds taxpayers to be sure they have all the documents they need,
such as W-2s and 1099s, before filing a tax return. You may also need a copy of
your 2015 tax return to make it easier to fill out a 2016 tax return. Beginning
in 2017, taxpayers using a software product for the first time may need their
Adjusted Gross Income amount from a prior tax return to verify their identity.
Learn more about how to verify your identity and electronically sign your tax
return at Validating
Your Electronically Filed Tax Return. The IRS will begin accepting and
processing tax returns once the filing season begins.
Under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), any
Individual Taxpayer Identification Numbers (ITIN) issued prior to 2013 or that
haven’t been used for tax-years 2013, 2014 and 2015 will no longer be valid for
use on a tax return as of Jan. 1, 2017. Individuals with expiring ITINs who need
to file a return in 2017 will need to renew their ITIN. This process typically
takes 7 weeks to receive an ITIN assignment letter, but the process can take
longer - 9 to 11 weeks if taxpayers wait to submit Form W-7 during the peak
filing season, or send it from overseas. Taxpayers who do not renew an expired
ITIN before filing a tax return next year, could face a delayed refund and may
be ineligible for certain tax credits. For more information, visit the ITIN
information page on IRS.gov.
If you claim the Earned Income Tax Credit (EITC) or Additional Child Tax
Credit (ACTC) on your tax return, the IRS must hold your refund until February
15. This new law requires the IRS to hold the entire refund — even the portion
not associated with EITC or ACTC. This change helps ensure that you receive the
refund you are owed by giving the agency more time to help detect and prevent
fraud.
The IRS always cautions taxpayers not to rely on getting a refund by a
certain date, especially when making major purchases or paying bills. Though
the IRS issues more than nine out of 10 refunds in less than 21 days, some returns
are held for further review.
The easiest way to avoid common errors that delay processing a tax return is
to e-file.
E-file is the most accurate way to prepare a return and file. There are a
number of e-file options:
- IRS
Free File,
- Volunteer
Income Tax Assistance and Tax Counseling for the Elderly programs,
- commercial tax preparation software, or
- a tax professional
Use Direct Deposit.
With direct deposit, the refund goes directly into the taxpayer’s bank
account. There is no risk of having the refund check stolen or lost in the
mail. This is the same electronic transfer system used to deposit nearly 98
percent of all Social Security and Veterans Affairs benefits into millions of
accounts. Direct deposit also saves taxpayer dollars. It costs the nation’s
taxpayers more than $1 for every paper refund check issued but only a dime for
each direct deposit made.
The IRS has a special
page on IRS.gov with steps to take now for the 2017 tax filing season.
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