Your Friends that Count

PATH Act Impact on Taxpayers in 2017

shutterstock 352461416As a part of the Internal Revenue Service (IRS) efforts to safeguard against tax fraud and identity theft, the Protecting Americans from Tax Hikes (PATH) Act was enacted on December 18, 2015. The PATH Act contains several changes to the tax law that will affect individuals and families in 2017.

Most significantly, the IRS has issued warnings of delays impacting 40 million working poor families claiming the earned income tax credit and the additional child tax credit. For 2016, the maximum earned income tax credit is from $506 for no qualifying children, to $6,269 for three or more qualifying children.

“We are warning our clients not to expect their returns until mid-February at the earliest,” said Glenda Britt, CPA, John Kasperek Co., Inc. in Calumet City, Illinois. “We want to communicate as much information as possible as we know so many families count on these checks."

According to the IRS, the practice of filing of fraudulent returns and claiming tax payers refunds before they have a chance to file has grown significantly over the years. The expected delays will give the agency more time to screen these returns. Tax filing starts January 23. You can check your refund status at IRS.gov if you are able to provide your social security number, filing status and refund amount.

Other PATH Act provisions impacting taxpayers include but are not limited to:

Wrongful-incarceration Exclusion
The PATH Act includes new wrongful-incarceration exclusion. This legislation provides a special one-year window during which an eligible wrongfully-incarcerated individual can file a refund claim based on any civil damages, restitution or other monetary award received and reported in a prior tax year, even if the normal statute of limitations had already expired for that year. The guidelines are contained in a set of frequently-asked questions, posted on IRS.gov.

ITIN Changes and Renewals
The PATH Act provisions related to the Individual Taxpayer Identification Number (ITIN) program require some taxpayers to renew their ITINs beginning in October 2016. ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer. Taxpayers using an expired ITIN could face a refund delay and may be ineligible for certain tax credits. These provisions, along with new procedures to help taxpayers navigate these changes, are outlined in IRS Notice 2016-48, and on IRS.gov.

Britt added, “We will continue to update our clients directly as well as provide relevant information through our website as it becomes available and any new pronouncements or warnings are issued by the IRS.”

See also “PATH Act Impact on Employers in 2017.” As always, these statements reflect the opinions of John Kasperek Co., Inc. and you should consult your attorney and/or tax professional to best determine how the law affects your unique situation. 

Tax Identity Theft Awareness Week offers important...
PATH Act Impact on Employers in 2017
Comment for this post has been locked by admin.
 

By accepting you will be accessing a service provided by a third-party external to https://www.kasperekcpa.com/

  • Our Clients

    Our Clients

    Our client list at John Kasperek Co., Inc. features a wide range of significant audit work including local governments, townships, school districts, municipal pension funds, not-for-profit organizations and common interest real estate associations. In addition, we also serve a variety of small business S-Corporations, Partnerships and individuals.

    We are happy to provide contact information for referrals upon request. Here is a sample of our client list.

  • Our Staff

    Our Staff

    Our team at John Kasperek Co., Inc., Certified Public Accountants is dedicated to providing quality, personalized financial guidance to local government, not-for-profit organizations, businesses, corporations and individuals.

    Managing Partner John Kasperek, Jr. has developed our team of professionals with an excellent working knowledge of the accounting principles and current standards to provide the highest level of excellence to our clients. Well known throughout Chicagoland area for his diverse expertise in all aspects of accounting, John has built a thriving company that serves the critical needs of the south suburban and northwest Indiana region.

    Please feel free to reach out to John or the rest of our team at John Kasperek Co., Inc. any time for answers to your questions. Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call (708) 862-2262.

  • Our News

    Our News

    In order to better serve our clients, partners, friends and colleagues, John Kasperek Co., Inc. will issue a new monthly digital newsletter with relevant financial and accounting information, changes to auditing standards and procedures, news and announcements from our firm. Please email This email address is being protected from spambots. You need JavaScript enabled to view it. if you would like to be added to our digital newsletter distribution list.

    Additionally, we recently created an informative, consumer-focused accounting blog titled Your Friends that Count that is posted online at www.kasperekcpa.com/friends and is distributed through Facebook and LinkedIn.

    We will post press releases, announcements and stories from our firm to our Newsroom page.
  • Our Offices

    Our Offices

    John Kasperek Co., Inc.’s Corporate Office in Mokena is conveniently accessible from I-80 and Lagrange Road. JKC’s Calumet City Office is located near Torrence Avenue, I-80 and I-94. Our primary service area reaches throughout the Chicago Southland and Northwest Indiana region.

    We travel to our clients to provide services when and where they are needed.

    9980 190th Street, Unit A
    Mokena, IL 60448
    1471 Ring Road
    Calumet City, IL 60409
    (708) 862-2262
    This email address is being protected from spambots. You need JavaScript enabled to view it.