Essential changes and updates you should know about when entering tax season

Delayed refunds for some taxpayers and the introduction of private collection agencies to recover overdue tax bills are among the changes affecting tax returns filed for tax year 2016.

Christopher Miller with the Internal Revenue Service said the IRS expects to process around 2.8 million tax returns from Missouri this year. That's approximately 2 percent of the 153 million tax returns the IRS expects to be filed. According to a press release from the IRS, taxpayers will have until Tuesday, April 18, to file their taxes, but should still plan ahead in anticipation of encountering changes to tax law.

EIC and ACTC delays

If a tax return is filed and it includes the Earned Income Credit (EIC) or Additional Child Tax Credit (ACTC), any refund will be held until Feb. 15. This delay allows the IRS additional time to detect and process potential tax fraud. Despite this measure, the IRS expects to issue more than nine out of 10 refunds in less than 21 days, according to their website. A feature, Where's My Refund?, from IRS.gov and the IRS2Go phone app, will show projected deposit dates for filers after Feb. 15. The refund status will not be visible before that date.

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PATH Act enacted

In 2015, the Protecting Americans from Tax Hike Act (PATH Act) was enacted. This act places safeguards against tax fraud, which is a serious issue for taxpayers. The PATH Act places safeguards against tax fraud related to identity theft, and the IRS cautions taxpayers to be alert against scams targeting their tax returns or refunds.

FAST Act requirements

Also enacted in 2015, the FAST Act requires the IRS to turn over debt collection on overdue tax bills to private debt collection agencies. Four companies will be responsible for collecting certain outstanding inactive tax receivables, according to a press release issued by the IRS. These companies have not yet been named by the IRS, but this is a change from prior IRS practice, where the IRS handled collections internally.

Form 5500 change

Anyone filing Form 5500 will see a change, as well. The automatic extension has been changed back to two and a half months from the earlier extension of three and a half months.

Free File program

Although it is not a new feature for 2016 tax return filing, the IRS does have a program designed to assist taxpayers. For individuals or families with annual incomes of $64,000 or less, the Free File program is available at IRS.gov. According to IRS.gov, approximately 70 percent of the nation's taxpayers are eligible for IRS Free File. Regardless of income, taxpayers have access to free online fillable forms, which allow for electronic filing. This option also is available through IRS.gov, and is free.

Any questions about tax law or filing taxes should be directed to the Internal Revenue Service. With a little advance planning and some research, filing taxes doesn't have to be a chore.