2017 Tax Filing Season Begins Jan. 23 for Nation’s Taxpayers, Tax Returns Due April 18
IR-2016-167
December 9, 2016
WASHINGTON; The Internal Revenue Service announced today that the nation’s tax season will begin on Monday January 23, 2017, and reminded taxpayers claiming certain tax credits to expect a longer wait for refunds.
The IRS will begin accepting electronic tax returns that day, with more than 153 million individual tax returns expected to be filed in 2017. The IRS again expects more than four out of five tax returns will be prepared electronically using tax return preparation software. Many software companies and tax professionals will be accepting tax returns before Jan. 23 and then will submit the returns when IRS systems open. The IRS will begin processing paper tax returns at the same time. There is no advantage to filing tax returns on paper in early January instead of waiting for the IRS to begin accepting e-filed returns.
“For this tax season, it’s more important than ever for taxpayers to plan ahead,” IRS Commissioner John Koskinen said. “People should make sure they have their year-end tax statements in hand, and we encourage people to file as they normally would, including those claiming the credits affected by the refund delay. Even with these significant changes, IRS employees and the entire tax community will be working hard to make this a smooth filing season for taxpayers.”
The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are changing tax software products this filing season will need their adjusted gross income from their 2015 tax return in order to file electronically. The Electronic Filing Pin is no longer an option. Taxpayers can visit IRS.Gov/GetReady for more tips on preparing to file their 2016 tax return.
April 18 Filing Deadline
The IRS reminds taxpayers that a new law requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb 15. In addition, the IRS wants taxpayers to be aware it will take several days for these refunds to be released and processed through financial institutions. Factoring in weekends and the President’s Day holiday the IRS cautions that many affected taxpayers may not have actual access to their refunds until the week of Feb 17, 2017
The filing deadline to submit 2016 tax returns is Tuesday,
April 18, 2017, rather than the traditional April 15 date. In 2017, April 15
falls on a Saturday, and this would usually move the filing deadline to the
following Monday — April 17. However, Emancipation Day — a legal holiday in the
District of Columbia — will be observed on that Monday, which pushes the
nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal
holidays in the District of Columbia affect the filing deadline across the
nation.
“The opening of filing season reflects months and months of
work by IRS employees,” Koskinen said. “This year, we had a number of important
legislative changes to program into our systems, including the EITC refund
date, as well as dealing with resource limitations. Our systems require extensive
programming and testing beforehand to ensure we’re ready to accept and process
more than 150 million returns.”
The IRS also has been working with the tax industry and
state revenue departments as part of the Security Summit initiative to continue strengthening
processing systems to protect taxpayers from identity theft and refund fraud. A
number of new provisions are being added in 2017 to expand progress made during
the past year.
Refunds in 2017; choosing e-file and
direct deposit for refunds remains the fastest and safest way to file an
accurate income tax return and receive a refund.
The IRS still anticipates issuing more than nine out of 10
refunds in less than 21 days, but there are some important factors to keep in
mind for taxpayers.
Beginning in 2017, a new law requires the IRS to hold
refunds on tax returns claiming the Earned Income Tax Credit or the Additional
Child Tax Credit until mid-February. Under the change required by Congress in
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 — until
at least Feb. 15. This change helps ensure that taxpayers get the refund they
are owed by giving the IRS more time to help detect and prevent fraud.
As in past years, the IRS will begin accepting and
processing tax returns once the filing season begins. All taxpayers should file
as usual, and tax return preparers should also submit returns as they normally
do — including returns claiming EITC and ACTC.
The IRS will begin releasing EITC and ACTC refunds starting
Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t
arrive in bank accounts or on debit cards until the week of Feb. 27 (assuming
there are no processing issues with the tax return and the taxpayer chose
direct deposit). This additional period is due to several factors, including
banking and financial systems needing time to process deposits.
After refunds leave the IRS, it takes additional time for
them to be processed and for financial institutions to accept and deposit the
refunds to bank accounts and products. The IRS reminds taxpayers many financial
institutions do not process payments on weekends or holidays, which can affect
when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday
weekend involving President’s Day may affect their refund timing.
Where's My Refund?
The IRS.gov and the IRS2Go
phone app will be updated with projected deposit dates for early EITC and ACTC
refund filers a few days after Feb. 15. Taxpayers will not see a refund date on
Where's My Refund? ...or through their software packages until then.
The IRS, tax preparers and tax software will not have additional information on
refund dates, so Where’s My Refund? remains the best way to check the status of
a refund.
