IRS Issues Fall Tax Reminders

The Internal Revenue Service is encouraging taxpayers to consider a mid-year tax withholding check-up.

According to IRS Spokesman Mark Green, taking a closer look at taxes being withheld can help ensure that the right amount is withheld.

Green said that could mean more money in someone’s pocket if too much is being withheld.

“A lot of times I get individuals who ask me, ‘Mark, I’m getting back $5,000 to $6,000 each year, should I adjust that so I have more money in my pocket?’,” said Green. “My answer is ‘yes,’ but that is an individual decision and I can understand that.”

However, Green said those who have a tax bill due every year should definitely check their withholdings.

“At the same time, if you owe money every year, you definitely want to make the adjustment on your W-4 form with your payroll department so more money will be coming out so you will not be caught up in the trap of paying money at the end of the year and that will help you out tremendously,” said Green.

Meanwhile, the IRS also wants taxpayers to be aware of some factors that could affect the timing of their tax refunds next year.

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.

Green said that will affect taxpayers claming either of those credits who file early in the tax season.

“We will hold that refund at least until February 15 and of course, we are doing that unfortunately due to the tax fraud and the criminal activities that are taking place, so this is an important change,” said Green. “We want to make sure that taxpayers are aware in the upcoming year that those individuals who are claiming the Earned Income Tax Credit or the Additional Child Tax Credit, you will not see refunds until after February 15, 2017,” said Green.

The IRS said that as in past years, it will begin accepting and processing tax returns once the filing season begins and all taxpayers should file as usual and tax return preparers should also submit returns as they normally do.

IRS officials went on to say that even though the agency cannot issue refunds for some of those early filers until at least February 15, most refunds will still be issued within the normal timeframe, 21 days or less, after being accepted for processing by the IRS.