United States of America Internal Revenue Services Commissioner, John Koskinen, told a senate panel that they will delay refunds to certain Americans until February 15, 2017. The reason for the delay isa growing problem the IRS is now facing with stolen identity refund fraud. According to Koskinen, the IRS has identified the perpetrators of the crime and detailed their process of impersonating taxpayers in order to receive their tax refunds. The Americans who will be affected by the delay, the amount of which number in the millions, are those who will claim the Additional Child Tax Credit or Earned Income Tax Credit.
"This is an important change as some of these taxpayers are used to getting an early refund," cautioned Commissioner Koskinen during a public announcement. "We want people to be aware of the change for their planning purposes during the holidays. We don't want anyone caughtby surprise if they get their refund a few weeks later than in previous years."
Over 20 million tax payers who claim the Additional Child Tax Credit, which is a credit aimed at single heads of households andmarried couples filing jointly who have two dependent children and whose max annual income is between $44,648 and $50,198. Over 25 million claimed the Earned Income Tax, which is for taxpayers with low to moderate incomes. The IRS will start accepting 2016 federal tax returns in January.