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Deductions & credits
@Ramer09 wrote:
But to say they need more time to review it more, makes the whole idea of PATH act pointless. That law is supposed to give the IRS more time so people who may be potential victims or affected by fraud or identity theft can get their legitimate refunds FASTER.
Actually the point of that provisions in the PATH act is NOT to speed up refunds or find victims of tax fraud but to find tax fraud being committed on the IRS by the filer.
Because falsely claiming EIC and ACTC was a high area of fraud, Congress gave the IRS extra time to verify that the income reported on the tax return actually existed.
In cases where the IRS has trouble verifying that income, as with some self-employed income or cases where the W-2 supplied by the employer is questionable (or the *employer* - not that taxpayer - is on the IRS watch list) the IRS can pull the return for further review (a normal 60 days hold - turned much longer now because of COVID-19). 60 day holds are also done for no reason at all , just a random check (like getting extra screening at an airport randomly).