Tax Filing Season Begins with More Scrutiny for Earned Income Tax Credit
JACKSON, Tenn.- CPA offices are gearing up around West Tennessee for the 2012 tax season, but officials said there may be more scrutiny this year when it comes to applying for Earned Income Tax Credit. Tax Enroll Agent Willie T. Morgan said in recent years the IRS has seen more Americans applying for the earned income tax credit on their tax returns. One in 5 federal income filers claimed the EITC last year. Morgan said the EITC is a benefit that reduces the amount of tax for people who work and have low to moderate wages. This year the application process could get more complicated. The numbers have IRS officials taking a closer look into your claims and eligibility. ” What we are getting right now they’re saying that some returns could be delayed,” said Morgan. Delayed and reviewed in an attempt to decrease fraudulent claims. Single mother, Latomya Marsh said she claims EITC to support for her seven children. She said a delayed refund could be financially devastating to families who depend on the benefits. “It gets you over that hump,” said Marsh. “It would hurt us pretty bad because we basically depend on it. That means there are other bills that can’t be paid.” Morgan said taxpayers who are applying for Earned Income Tax Credit this year should take time to review the information they are putting in their tax returns, check and make sure you are eligible for the benefit and that all of the information is correct. “That was the main reason they delayed some of the tax returns last year,” said Morgan. If there is a problem with your claim, Morgan said tax returns could be delayed for some families anywhere from 4- 5 weeks. “Just like any part of life, there is a small percentage who will do something that Will hurt everybody else,” said Morgan. “I think what the government is doing now is creating a system where they can alleviate that problem.” Tennessee is one of nine other states who saw a large increase in EITC claims. Increase researchers attribute the hike to the great recession and policy changes that broadened eligibility and increased benefits.
