TPG Blog

20
Apr

PATH Act may delay 30M+ refunds

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path actOn December 18, 2015 Congress passed a bill that may impact 30+ million taxpayers and the tax professionals who prepare their returns. The PATH Act (Protecting Americans from Tax Hikes) creates a law that prohibits the IRS from releasing refunds for taxpayers claiming Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTC) prior to Feb. 15, 2017.

The impact to taxpayers and tax professionals

  – Estimated 30+ Million taxpayers impacted

  – Over $100 Billion in refunds may be delayed

This PATH Act legislation may create funding delays of up to six weeks or more for taxpayers filing at the beginning of the tax season, impacting those that need their refund the most. TPG recognizes that these funding delays may negatively impact necessary cash flow for taxpayers and tax professionals, and is prepared to help both, with products that will bridge the gap between filing and funding.

 

How TPG can help

Products that bridge the gap to February 15th

The law changes created by the PATH Act mean Fast CashADVANCE will be a must-have for taxpayers on a tight budget, and the Fast CashADVANCE will be critical for tax professionals trying to meet cash flow and overhead challenges.

Now is the time to consider products that can help during the first 6 weeks of tax season.

 

Cash flow help for tax professionals

Tax professionals can get help with operating costs at the start of tax season with cash flow available as early as December 1st and cash flow help available at the start of season to help with season startup expenses.

Tax time cash advance for taxpayers

Taxpayers can receive a cash advance before the IRS can issue refunds at no cost to the taxpayer. The Fast CashADVANCE provides taxpayers with some cash before the IRS can release the refund amount.

Free up cash flow for taxpayers

Even taxpayers that have the ability to pay up front with cash or credit may want to keep more cash on hand with refunds delayed up to 6 weeks or more. With the RefundTRANSFER, taxpayers can pay with their refund so there’s nothing to pay out of pocket. That helps taxpayers keep more cash in their wallet to pay bills and buy things they need while they wait for their refund.