CONSUMERS

IRS kicks off income-tax season, warns of refund delays for some claiming popular credits

Russ Wiles
The Republic | azcentral.com
The IRS says that some income-tax returns will be delayed because of a new law that aims to deter fraud on certain credits.
  • The season for filing income tax returns starts Jan. 23, and April 18 marks the regular deadline
  • The IRS warns that refunds will be delayed on returns claiming two popular tax credits
  • Taxpayers are urged to try finding answers first at irs.gov, as telephone waits could be lengthy

The annual tax-return filing season kicks off in about two weeks, with the Internal Revenue Service warning that refunds for some taxpayers could be delayed for a few weeks.

The IRS will begin accepting electronically filed returns Jan. 23. But reflecting a law passed by Congress last year, the agency won't begin issuing refunds until the week of Feb. 15 on returns claiming the earned income tax credit or the additional child tax credit. The delay is designed to deter fraud associated with those credits. Refunds probably won't become available until the week of Feb. 27, potentially affecting more than 30 million returns, said IRS Commissioner John Koskinen in a media briefing. Still, he advised taxpayers to file as early as they can.

The IRS paid refunds on 73 percent of individual tax returns last year, with refunds averaging $2,857.  Koskinen said the IRS expects similar numbers this year. Taxpayers can check their status by clicking on the "where's my refund" feature at www.irs.gov. Free tax-preparation software is available to people earning less than $64,000 annually. Interested taxpayers should click on the "free file" link at irs.gov on or after Jan. 13.

The IRS expects to receive more than 153 million individual returns, including more than 3 million from Arizona. About 70 percent of taxpayers don't itemize deductions, instead taking the standard deduction.

The federal filing deadline this year will be delayed until April 18, three days later than normal. Taxpayers will have the extra days because April 15 and 16 fall on a weekend and because April 17 is the Emancipation Day holiday in Washington, D.C. Taxpayers who need extra time can receive automatic six-month filing extensions to Oct. 16.

Koskinen advised taxpayers to try finding what they need at irs.gov rather than telephoning the agency. "We expect our phone lines to be extremely busy this year, and there will be wait times," he said.

Publication 17, available at irs.gov, is a good general guide to tax issues. As another alternative, the IRS conducts in-person meetings with taxpayers, though appointments are required. Call 844-545-5640 for more information. The agency has local offices in Phoenix (602-636-9199), Mesa (480-503-7355) and Glendale (623-643-0399).

Reach the reporter at russ.wiles@arizonarepublic.com or 602-444-8616.