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IRS has announced that tax return processing begins on January 27, 2020. Refunds are generally processed within 10-21 days after the tax return is accepted by IRS. For tax returns containing Earned Income Tax Credit (EITC) or the additional child tax credit (ACTC), those refunds will be issued in late February, starting the 27th. IRS will process those returns but will not issue refunds until certain verification steps have been completed by them. We have no control over the issuance of refunds. Illinois tax returns containing EITC will experience delayed refunds also.
In an effort to reduce fraudulent refund claims, both the IRS and state agencies are putting in place certain processes to determine the legitimacy of tax returns claiming certain credits (cash back) containing low to middle income and dependent children. If the agency suspects that the income and/or the dependents claimed are not correct, the tax return could be held up for an extended period of time until their investigation is complete. Both agencies have the right to reduce or eliminate the refund requested on the original tax return until the taxpayer can prove the position taken. If either agency determines that the misrepresentation was intentional, severe penalties could be assessed.