What is PATH Act?
The PATH Act (Protecting Americans from Tax Hikes Act of 2015) is federal legislation enacted on December 18, 2015 that prohibits the IRS from releasing refunds for taxpayers claiming Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTC) prior to February 15.
According to the IRS website the law was enacted to help prevent identity theft, and the entire refund held until at least February 15th.
What's the Impact?
This legislation will create funding delays of up to six weeks or more for an estimated 30M taxpayers filing at the beginning of the tax season. As much as $100B+ in federal tax refunds may be delayed.
On December 9th the IRS announced that "...many affected taxpayers may not have actual access to their refunds until the week of Feb. 27."
Will my client's refund be delayed?
The PATH Act refund delays only impacts taxpayers that are claiming Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTC) prior to February 15th. Visit the IRS website for more details about PATH Act refund delays.
Will solution can I offer my clients?
Partner with TPG and you can offer taxpayers two great solutions to the challenge created by PATH Act refund delays.
Offer a free cash advance with the FastCashADVANCE - Taxpayers can receive a free* cash advance within minutes of IRS approval of their tax return. Service taxpayers that can’t wait up to 6 weeks for their refund with FastCashADVANCE. Learn More
Help clients hang onto more cash with the RefundTRANSFER - Your clients may have the cash to pay you up-front, but when they learn about the refund delays, many taxpayers will need a way to keep more cash on hand. Paying for tax preparation with their refund helps clients free up cash that they need to pay bills and buy the things they need. Learn More
What help is there for me?
If you can't wait weeks to get paid, you can get paid in days with the free SimplyPAID. Like a free line of credit at the start of tax season, you can get paid upon IRS accepted acknowledgment of your client’s return instead of getting paid upon IRS funding. Get paid in days with SimplyPAID, the free fee advance from TPG. Learn More
* Fees may apply for other products and services. Additional fees may apply if Green Dot card is selected for method of receiving Fast Cash Advance. The Green Dot card is issued by Green Dot Bank, Member FDIC subject to Green Dot card terms and conditions. Please check with transmitter/software provider for program availability. Separate fees apply if the taxpayer selects a Refund Transfer, which is not required for this Fast Cash Advance program.