What Is the PATH Act and Who Does It Affect?

The PATH Act directly affects tax planning and client refunds, particularly for those claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). Under this law, the Internal Revenue Service must hold refunds that include these credits until at least mid-February each year. For CPA firms, this means proactively managing client expectations, explaining potential refund delays, and ensuring accurate reporting. Proper planning, timely filing, and thorough documentation can help reduce issues, allowing both taxpayers and professionals to navigate refund timelines efficiently and maintain trust.

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What Is the PATH Act? How It Affects Your Tax Refund & Credits in 2026

The PATH Act was introduced to prevent tax fraud and protect key tax credits like the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). Learn how the PATH Act may delay refunds and impact your tax return this year.