In
December of 2015, the Protecting Americans from Tax Hikes Act was passed. In
order to further protect both tax filers and the IRS, the organization also
enacted the Security Summit Initiative soon after. Since the passing of these
new security measures, you may be wondering if and how they will affect you.
Generally, they won’t unduly impact non-scammers, though they will still have
some effect on all taxpayers.
Tax
Credit Effects
The
main way in which this act will affect common taxpayers is by raising taxes and
delaying money owed, all in an effort to recoup money lost to past scammers.
This may not seem fair, but the federal government has to make up for the
losses it has suffered due to fraud, showing that crime really does affect
everyone in negative ways.
One
way in which the government is recouping lost funds is by delaying some
refundable tax credits, which include the Earned Income Tax credit and the
Additional Child Tax Credit. So, while you can still get these credits if
you’re truly entitled to them, it will take longer than usual since the IRS is
being more dutiful about carefully checking them over to avoid sending refunds
out to people who are attempting to cheat the system.
Individual
Tax Payer Identification Number Effects
In
the past, taxpayers who lacked a valid Social Security Number were able to
apply for Individual Taxpayer Identification Numbers. And, while that policy is
still in effect, the new Act requires that taxpayers must have used their
numbers to file a return in the last three years. If they have not, that number
is deemed invalid and must be renewed before a return can be filed.
Whether
you have to renew your number or not, returns and refunds for people with Individual
Taxpayer Identification Numbers will likely be delayed as the IRS checks over
these numbers and related documents more carefully to try and avoid fraud.
These
are just a few of many ways in which the IRS’ new security measures are
impacting taxpayers. If you’re curious about how you will be affected, then
talk it over with a qualified tax professional so you don’t get faced with any
unwanted surprises.