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Category: E-filing and Refund Questions

IRS Has Delayed Returns Containing Certain Forms

IRS Has Delayed Processing Returns with certain forms.

Please note that this is a nationwide delay which will affect all taxpayers filing these forms. Regardless of tax preparation software, service, or preparer you choose, every return with the below mentioned forms included, will be delayed.


By law, the IRS cannot issue refunds for people claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. The law requires the IRS to hold the entire refund- even the portion not associated with EITC or ACTC. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer's accounts or debit cards beginning February 27, 2018 if direct deposit was used and there are no issues with the return.

This law took effect in the beginning of 2017 and allows the IRS more time to detect and prevent fraud. The IRS cautions taxpayers not to rely on receiving a refund by a certain date. Most returns are processed and refunds issued within 21 days. However, some returns require further review.




For the 2013 filing season, the IRS announced a delay in processing all tax returns containing the following forms:

* Form 5695 - Residential Energy Credits

* Form 8941 - Credit for Small Employer Health Insurance Premiums

* Form 8910 - Credit for Alternative Motor Vehicles

* Form 8903 - Domestic Production Activities Deduction

* Form 8396 - Mortgage Interest Credit

* Form 8859 - DC First Time Home-buyer

* Form 4562 - Depreciation

* Form 8582 - Passive Activity Loss Limitation