Everyone who claims these credits is subject to the PATH regulation.
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 2019.
- 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 bank accounts or debit cards starting in late February, if direct deposit was used and there are no other issues with the tax return.
- This additional period is due to several factors, including the Presidents Day holiday and banking and financial systems needing time to process deposits.
This law change, which took effect at the beginning of 2017, helps ensure that taxpayers receive the refund they’re due by giving the IRS more time to detect and prevent fraud.