What is PATH Act?
The PATH Act (Protecting Americans from Tax Hikes Act of 2015) is federal legislation enacted on December 18, 2015 that prohibits the IRS from releasing refunds for taxpayers claiming Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTC) prior to February 15.
According to the IRS website the law was enacted to help prevent identity theft, and the entire refund held until at least February 15th.
What's the Impact?
This legislation will create funding delays of up to six weeks or more for an estimated 30M taxpayers filing at the beginning of the tax season. As much as $100B+ in federal tax refunds may be delayed.
On December 9th the IRS announced that "...many affected taxpayers may not have actual access to their refunds until the week of Feb. 27."
Will my refund be delayed?
The PATH Act refund delays only impacts taxpayers that are claiming Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTC) prior to February 15th. Visit the IRS website for more details about PATH Act refund delays.
What help is there for me?
TPG offers taxpayers two great solutions to the challenge created by PATH Act refund delays.
Hang onto more cash with the RefundTRANSFER
Keep more cash on hand by paying for tax preparation with your refund.Have your return prepared and pay nothing up-front. Tax preparation fees are paid from your refund once the IRS releases your refund. Free up cash to pay bills and buy things you need. Learn More
Get cash weeks before your refund is available with FastCashADVANCE
Receive up to $1,000* with a free** tax time cash advance. Advances are approved within hours of IRS acceptance of your tax return. Can't wait 6 weeks for your refund? Find a participating tax professional that offers the FastCashADVANCE. Learn More
* $1,000 is a loan based upon your refund and is not the refund itself. Fast Cash Advance is provided by First Century Bank, N.A.,Member FDIC, not affiliated with TPG. Separate fees apply if the taxpayer selects a Refund Transfer. A Refund Transfer is not required for the Fast Cash Advance. Not all consumers will qualify for a loan or for the maximum loan amount.
** Fees may apply for other products and services. Additional fees may apply if Green Dot card is selected for method of receiving Fast Cash Advance. The Green Dot card is issued by Green Dot Bank, Member FDIC subject to Green Dot card terms and conditions. Please check with transmitter/software provider for program availability. Separate fees apply if the taxpayer selects a Refund Transfer, which is not required for this Fast Cash Advance program.