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 9, 2016 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 FastCashADVANCE1
Receive up to $1,500 at no cost with a tax time cash advance. 2 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 Optional tax-refund loan provided by MetaBank®, not the actual tax refund. You can e-file without applying. Fees for other optional products may apply. Loan amounts of $500, $1000, or $1500. Loan deducted from tax refunds and reduces amount paid directly to taxpayer. Availability and loan amounts subject to eligibility, underwriting conditions, and locations.
2 Fees may apply for other products and services. Additional fees may apply if Walmart MoneyCard is selected for method of receiving Fast Cash Advance. The card is issued by Green Dot Bank, Member FDIC. Monthly and other fees apply. See envelope for details.