The IRS has reminded employers of filing deadline changes related to Form W-2, Wage and Tax Statement, made by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). At the same time, the agency reminded individuals that the PATH Act may delay some refunds if they claim the earned income tax credit (EITC) or advanced child tax credit.
Under the PATH Act, the due date for employers to submit Form W-2 to the SSA has been moved to January 31, with no extension for filing electronically. This change is effective for Forms W-2 relating to calendar years beginning after December 18, 2015.
Additionally, the PATH Act generally requires that no credit or refund for an overpayment for a tax year will be made to a taxpayer before the 15th day of the second month following the close of that tax year, if the taxpayer claimed the earned income tax credit (EITC) or additional child tax credit on the return. The provision in the PATH Act applies to credits or refunds made after December 31, 2016.
Individual taxpayers should be mindful of such changes, particularly the one pertaining to refunds. As individual taxpayers tend to be calendar year taxpayers, for most taxpayers who claim the EITC or additional child tax credit, any refund of tax will not be made to the taxpayer prior to February 15 of the year following the calendar year to which the taxes relate.
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