Has anyone heard that the IRS will not be giving out early refunds this year?

Question

We usually file at HR Block,and always take advantage of getting our refund within 2 - 3 days.I have recently heard early refunds will not be given this year.Does this apply to businesses who offer this feature?

Answer 1

From the IRS website:

The February [11th] delay caused by the AMT patch will affect taxpayers using any of these five forms:

Form 8863, Education Credits.
Form 5695, Residential Energy Credits.
Form 1040A’s Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers.
Form 8396, Mortgage Interest Credit.
Form 8859, District of Columbia First-Time Homebuyer Credit

Taxpayers not filing these forms should not experience delays in filing, and the IRS expects to begin processing those returns starting on Jan. 14.

Those overpriced loans were based on the 1/14 filing date and a normal 2 week turnaround time. It's unknown if the tax preparers will go ahead and accept the 2/11 returns in January and allow a 6 week RAL.

Answer 2

I think you are really asking a different question than the previous two responders have answered - not about the delay due to the late AMT patch, but about the refund anticipation loans. This isn't something the IRS does, they are high fee high interest loans given by the tax prep companies and then paid off when your refund comes. The delay in being able to file if you use certain forms has nothing to do with the RAL's. They are a real bad deal for consumers - but if you still want to do it, check with the tax prep companies. Some might still be doing it, some might not.

Answer 3

The IRS never gave out "early refunds." Most of the tax prep mills will arrange an extremely expensive loan (APR as high as 2300%!) once you file through them. Unless you're about to be evicted or the kids are going hungry, skip the ripoff loans. It only gets you your money about a week faster than direct deposit of your refund does. A payday loan store would be cheaper!

Nobody is doing the "paystub loans" any more due to heavy losses. You must have your W-2 in hand and actually file the return to get the "rapid refund" loan.

Answer 4

This has something to do with 3 million taxpayers that are involved with AMT. AMT is the Alternative Minimum Tax for high earners. Congress was late again and the IRS has to make adjustments and refunds for AMT taxpayers will be processed in February.

Answer 5

Yes. According to the PBS News Hour, the IRS is delaying refunds until late February due to last-minute changes to the Alternative Minimum Tax. I imagine they have a lot of computer reprogramming to implement.

Answer 6

Unless you are affected by the AMT, your return is going to be processed in the same time frame as before.

Your tax prep place will still offer the same bank services, such as the refund anticipation loan. Call you tax prep place to see when they will begin processing these loans.

Answer 7

I don't know but if it's true, millions of Americans just fainted!