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March 05, 2012

Software Glitch Resulting in Refund Delays Has Been Fixed, Says IRS

By Beecher Tuttle, TMCnet Contributor

The Internal Revenue Service (IRS) is claiming to have fixed two separate software glitches that caused significant delays in taxpayers receiving their refunds.

IRS spokesman Frank Keith told Reuters that the returns of "several million taxpayers" took longer to process because of issues with the service's renovated software system. Glitches were reportedly found in the department's new anti-fraud safeguards and with its "Where's My Refund?" tool, which lets taxpayers check on the status of their refunds.

The IRS told Accounting Today that both issues have been resolved and that "taxpayers who filed after February 13 have not experienced delays." Officials also said that more refunds had been issued this year than at the same point last year and that the majority of taxpayers have received their check within the established timeframe.

However, several tax preparers told Reuters (News - Alert) that their refund numbers aren't lining up with those provided by the IRS.

Louisiana-based tax preparer Gina Jones told the news source that as many as 85 percent of her customers experienced delayed refunds, with many receiving their checks seven to 10 days beyond the established window for returns.

Mark Staber, chief tax officer with Jackson Hewitt Tax Service, agreed, noting that "the delays - and IRS not being as communicative as perhaps they could have been -- have left many consumers frustrated and confused over the timing of their refunds."

Even if the software issues have been remedied, concern still remains regarding the fate of the new system. The IRS had planned to junk the old system in October but may have to reconsider the move following the delays.

In related news, the IRS is warning of a phone scheme that promises to provide refunds or stimulus payments to senior citizens and other non-taxpayers. The scammers often try to convince their targets that they can obtain American Opportunity Tax credits even if they aren't enrolled in college, or get them refunds on taxes that they paid for groceries.

“This is a disgraceful effort by scam artists to take advantage of people by giving them false hopes of a nonexistent refund,” IRS Commissioner Doug Shulman said in a statement.




Edited by Rich Steeves
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