Tax refunds may come later than usual this year thanks to Uncle Sam. Total tax refund volume is down 33% through late January compared to the year ago period as cited by the IRS. The delay is a new tax law, The PATH Act, aimed at combating fraud, especially for those who claim the Earned Income Tax Credit or the additional Child Tax Credit. Checks are arriving later.
Although the IRS released those funds on February 15th, taxpayers will not see the funds deposit into their bank accounts until as late as the week of February 27th. According to the IRS, more than 40 million tax filers are forced to wait longer for the refunds due to the due diligence of the IRS and homeland security to confirm the taxpayers identity.