The Internal Revenue Service has been having more problems with delayed tax refunds.
Early in tax-filing season, the IRS warned that taxpayers who had filed prior to January 26 might see delays of a week beyond the projected date shown in the online “Where’s My Refund” tool (see IRS Warns of Tax Refund Delays).
However, since February 15, the “Where’s My Refund” tool has displayed a message indicating further delays. “We are aware that some taxpayers who have filed electronically and received an acknowledgement from the IRS are concerned when they visit ‘Where's My Refund’ and are told that we have no information regarding their return,” said an update message on the page five days later. “This is a temporary situation, and we expect to resolve the matter in a few days. At that time, taxpayers will be able to get an expected refund date when they visit ‘Where's My Refund.’”
Part of the problem appears to be with the new filters that the IRS installed this tax season to combat identity theft fraud, and which were blamed for causing the delays last month (see IRS Steps up Efforts to Combat Identity Theft Fraud).
The IRS asked taxpayers not to repeatedly call the agency to inquire about their refunds, but apparently many taxpayers are concerned about the delays, especially when they are getting mixed signals from the “Where’s My Refund” tool.
“If a taxpayer received an acknowledgment message that their e-filed tax return has been received, they can be assured that the IRS has the tax return even though ‘Where's My Refund’ does not reflect that,” said the IRS. “Taxpayers should not call the IRS unless specifically directed by ‘Where's My Refund,’ as there is no new information to give them.”
The IRS apologized to taxpayers for the situation and said most of the refunds would be issued within 21 days. “We expect the vast majority of tax refunds to continue to be issued within the historical range of 10 to 21 days,” said the IRS. “The IRS is taking steps to update information so that Where's My Refund has current information. The IRS apologizes for any inconvenience and will provide updated information as soon as possible.”
The IRS said that most of the delayed refunds were filed between February 2 and February 7, according to a local ABC News affiliate in Charleston, S.C. Other taxpayers were reporting delays of nearly a month, according to eCreditDaily.com.
When the IRS blocked tax refunds last year, the Taxpayer Advocate Service found that 75 percent of the taxpayers who complained to the service ultimately were found to be eligible for the blocked refunds, but taxpayers had to wait an average of nearly six months to receive them (see IRS Fraud Detection System Leads to Refund Delays). The average amount of the blocked refunds was upwards of $5,600.
23 Comments
I just posted my comment about feeling 'entitled ' to my tax refund. I was 'expecting' to get it within a few weeks. Its been a MONTH thats what brought me to the article to begin with, then I saw these comments people were leaving. You should really walk a mile in someones shoes before you judge them. I wish I could make enough money to OWE taxes at years' end agian. but Ive got to work, for whatever little money I get.
Posted by: acowan | March 1, 2012 10:12 PM
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when you live on $1800 a MONTH, but WORK, actually WORK 45 hours every single week for this money (1800) and over 600 each month goes to Just childcare, YES, I DO feel entitled to my tax refund. When the housing market was booming, I made 68K for three years in a row. I OWED taxes at the end of the year, and I was just fine with paying it. BECUASE, when you make that much, you can afford to pay taxes. some of the comments on here are terrible.
"feel entitled' to the money. YOU try living on this salary, and NOT qualify for ANY gov't assistance, becuase your "just over" the line.
OH yeah, it SURE it easy. what am I complaining about right?
Posted by: acowan | March 1, 2012 10:09 PM
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@taxprep1111
W-2s are NOT sent to the IRS they are sent to the Social Security Administration.
Posted by: debbiebearden | February 22, 2012 9:19 AM
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I guess I have been preparing taxes too long. When they first came out with EIC, I was angry they were taking my tax dollars and giving them away!
After a little while what I noticed is that if I would tell these people - hey if you make $10,000 next year you will get the best EIC, I had people go get jobs to make sure they got the maximum - they then qualified for less assistance (saving our tax dollars).
Then they came out with Child Tax Credit, and I "educated" my clients that hey, if you make $20,000 next year you get less EIC but you get the Child Tax Credit! Lo and behold the next year they had worked more or got a better job so they could get both! They also got less assistance (saving our tax dollars even more).
Then they came out with the Extra Child Tax Credit, and I once again "educated" my clients that they would still get some EIC, Child Tax Credit to wipe out their taxes and a refund of the difference!
They were now making so much money because if really felt good to have money in their pockets that they no longer qualified for EIC, when their kids got older they no longer got the Child Tax Credit nor the Extra Child Tax Credit.
So when they came to get their taxes done, they were a little disappointed. My question to them was "Would you want to go back to making so little, less money in their pockets?" The answer was always NO!
I saw people go from making $3,000 per year to $40,000 a year in a matter of three or four years, just because there was an incentive and when the incentive went away - they were still blessed to be making money (not alot but no more assistance!)
So while most of you are not for EIC, I am an emphatic supporter, we just need to educate them. Are there people who take advantage, absolutely (still makes me mad) but the benefits are huge! IF they are encouraged to make more money!
Now when so many have lost their jobs, it keeps them going gives them the break they needed to maybe make it one or two more months down the road.
Again I will suppport it!
Posted by: debbiebearden | February 22, 2012 9:17 AM
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Snoweustis&- I love to point out that you can not spell either! Your grammar (not grammer) is hideous. And reading through a majority of these posts, none of you know the simple difference between there, their and they're! Why don't you all try living on $350 a week unemployment with a family and then talk the trash you're spewing. After having just come from the middle class and quickly sliding down into the pit this workforce has become, that tax refund is a savior to my family. Th EIC is one of the only things this government is doing to help us. Not everyone in this country that needs help is a fraudster or lowlife. We lost our jobs, and we are desperately trying to make ends meet! We did not indulge in bad behavior or a bad decision! We have paid our taxes!!! We pay income tax, homeowners tax, registration tax, state tax. . .etc. Please, stop judging people! Especially when you are as clueless as you exhibit!
"As a certified tax preparer I think the government needs to do away with the Earned Income Credit. It will reduce the fraud by 80%, save the broken government many millions of dollars, and make(keep)the people working instead of waiting on the freebie. Why reward these people for bad choices/behavoir. Have you looked at the comments on some of the other sites about the refund delays? These people can't spell, have bad grammer, and feel entitled to this money! So much so, they can't wait an extra week or two to get it. They have paid absolutely NO taxes in their lifetime but use all that our taxes pay for. Anyone who receives public benefits of any kind should agree to managed birth control - men & woman!
Posted by: snoweustis7@aol.com | February 21, 2012 2:00 PM"
Posted by: MindyourPsandQs | February 22, 2012 6:27 AM
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Really do away with EIC...sigh middle class America does claim EIC...the sad part is that while everyone is complaining about the economy who do you think is putting their money into it...yes poor people are saving their money not spending it...Thia is why the world laughs at us we have become a nation of disrespectful, hate-filled, blamers...shame on you all for having the nerve to say what you have about your "clients" believe me Rockefellers won't be using any of you to prepare their returns. God help us because what happens to one will happen to all.
Posted by: realist | February 21, 2012 8:30 PM
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Anyone who thinks that doing away with E.I.C would do away with fraud is a few bricks shy of a full load! The fraud the I.R.S is experiencing is from early filers claiming to be someone there not! and they try getting to peoples tax returns before the legal person files. I don't receive the E.I.C but i'm glad it's available most people who don't like it either have no children or have plenty of money. I would be willing to bet that the mother receiving E.I.C every year for her children would set you people straight in a split second hurry! that money is needed by those people.From now on check your facts before you go spewing poisonous opinions all over the internet.
Posted by: sls9971 | February 21, 2012 6:40 PM
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JDAVIS-
Don't get me wrong, I understand what you are saying.
5 years ago I had an accident. Since then I have had 6 major operations which means basically 6 months out of work unpaid because I'm self-employed and $40,000+ in medical bills. Thank God I had health insurance, the total bills were over $900,000, all of which has increased my insurance insanely. Also during that time my wife was laid off twice. Even though we almost lost the house, not once did I ever think about sticking my hand out for help from the federal government. I just thanked God I didn't break my neck and straddle my wife with a quad.
Just remember any government big enough to give you what ever you need is big enough to take what ever you have.
The EIC is just a step down the road toward socialism.
Posted by: WCSCPA | February 21, 2012 6:14 PM
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I was like you all until two week ago. My client now needs there EIC refund to bury there two kids that were killed in a fire . They once were upper middle class until the dad lost his business and she her job. They were happy to see the EIC money as it would help them live a little better. That was before there two kids got killed.
What a bunch of of useless ass holes we are to vent such hate on the internet. God forbid you all fall on bad time.
Help them fill out the w-4 next time and stop complaining !!! Do something stop complaining I am her in tears checking to see when that refund will come in.
EIC does serve a purpose and i will process them free at my firm for now own.. !!!!! What is wrong with people thes days !!!!! geez.
Posted by: JDAVIS | February 21, 2012 5:29 PM
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Why do we do tax returns in the first place? The IRS has all the information necessary to file our taxes, i.e., Each time a W2 is given to an employee, the W2 is sent electronically to the IRS. The same is true for all 1099's (except the 1099-MISC the TP makes up which should be disallowed), all transactions for bonds, stocks, pensions, gambling (W2-G), etc., the IRS already has. Why not them create the return, send it to the taxpayer, and have the taxpayer sign and send in what is due or send the refund to the taxpayer with the return. If there are exceptions, and there will be but not anywhere as many as the competent taxpayers that do the right thing, such as being responsible for the W4 and withholding they need. This would then make the Employers more responsible in completing the W4's (IRS could place penalties on too much or too little federal and state withholding directly on the employer). Then the Shoe would be on the other foot - the IRS must then wait for the taxpayer to pay any discrepancy of underpaid tax with severe penalties on late charges.
All the EIC people would have to prove beyond a doubt that the dependents were theirs - they would have to provide an 8862 upfront that shows who really takes care of the dependent during the year - not like it is now. Now, they give out the EIC money to the first one that files and then try to get it back after the mistake has already been made. If the EIC recipient wants the funds, then make them work for it! Make the EIC receiver prove the dependent is really living with them, they really are taking them to the doctor, and they REALLY provide for their support. I bet once the Foot (IRS) is requiring the Shoe(EIC recipient) to do the work, there will be very little if any room for fraud, and a whole lot less work to get the EIC to the real people that deservce it (if any).
Just a taxprep....
Posted by: taxprep1111 | February 21, 2012 4:54 PM
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I agree with snoweustis7 - get rid of EIC and get rid of fraud. There were "millions" of returns filed in the first 4 weeks of filing - 98% of these returns are EIC! They all get back $thousands and pay zero State and zero Federal taxes. They are the ones calling my office the most! The real taxpayers use the W4 to control what is withheld from their checks - they itemize deductions, and they THE MIDDLECLASS are the only ones paying taxes!
New rules: 1) You have a child - no daddy - no EIC 2) No more HOH head of household status This filing should be disallowed. Unless there is a death certificate stating one parent is dead and the other is widowed(with an SSN included to prevent fraud)! Or they have a divorce decree copy with the return including the SSN of the person they divorced to keep the double-filing HOH parents from getting twice the EIC they should get. 3) Only married filing Joint MFJ with dependents, or divorced filing paper with divorce decree and SSN are eligible for EIC. New Filing status: DD (divorced or Dead spouse) and in both circumstances they should provide names/ssn of the person they DD'd to prevent fraud. The Frauds can never repay what they owe to the IRS, even if they are caught. Get real, they have little income now. The IRS can make them file taxes and take their refund but that's not going to be enough to ever pay back the thousands of $ they owe. You must catch them on the front-end or it's too late.
Who in their mighty wisdom, decided that the middle-class americans should be the only ones paying taxes?!!!!!! Then the software problems for the IRS could handle the information in a timely manner and REAL TAXPAYERS could get their refunds.
Just a taxprep.
Posted by: taxprep1111 | February 21, 2012 4:18 PM
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This identity problem was also brought to you by the same buffoons in DC. The original Social Security legislation prohibited the use of the SS number and/or card for any type of identification. Some where while they were running down the path to turn the voluntary social security system into a mandatory/empolyer system, the number is now used for income taxes. So when SS publishes death records, cons have access to the income tax system. What do you thing would happen if these cons had access (name, member number, account number, etc) to your pension, IRA and other financial records. What were these buffoons thinking.
I saw a news clip this morning and this guy recommended that you give nobody your SS number. All these places have their own numbering system and do not need your SS for identification.
Posted by: WCSCPA | February 21, 2012 3:42 PM
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snoweustis7: If you get rid of the EIC how would the government transfer money from the have's to the have not's?
Ponder this as you go to sleep tonight. There are people still alive today that have watched the government increase their taxes from nothing to 25-30% of what they make and pile up $17 trillion of debt. Does anybody really think that these buffoons in DC who can't control their spending, can control the collection of taxes any better.
Posted by: WCSCPA | February 21, 2012 2:52 PM
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As a certified tax preparer I think the government needs to do away with the Earned Income Credit. It will reduce the fraud by 80%, save the broken government many millions of dollars, and make(keep)the people working instead of waiting on the freebie. Why reward these people for bad choices/behavoir. Have you looked at the comments on some of the other sites about the refund delays? These people can't spell, have bad grammer, and feel entitled to this money! So much so, they can't wait an extra week or two to get it. They have paid absolutely NO taxes in their lifetime but use all that our taxes pay for. Anyone who receives public benefits of any kind should agree to managed birth control - men & woman!
Posted by: snoweustis7@aol.com | February 21, 2012 2:00 PM
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This article is really covering several problems.
The first is the flurry of tax changes made by Congress at the end of every tax year.
The second is the use of the EIC credit to lower labor costs for U.S. businesses because neither big business nor politicians want a minimum wage that actually supports families and both want the federal government to subsidize American payrolls while they complain about taxes being too high.
The third is taxpayers and who use the federal government, specifically the IRS as their forced savings system by not having the proper taxes withheld in their paychecks along without a straight-forward way for individuals and businesses to easily calculate the correct withholding for employees with multiple employers and working spouses.
The fourth is the abuses of the EIC credits by unscrupulous taxpayers making fraudulent claims.
The fifth problem is the lack of proper congressional oversight and funding of the government awards for IT support to provide, maintain and upgrade the hardware and software requirements of the federal income tax season.
And finally, Congress loves last-minute tax code changes, and short-changing both proper enforcement of personal and business tax code regulations, as well as IT requirements.
Posted by: ThoseWhoServe | February 21, 2012 10:17 AM
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numberchick, If you read further you will see the IRS was burdened with dealing with Circular 230 issues of new "final" regs in October, but that would have shown the lack of communication in our current almost socialist government. It will not be long before the IRS is hammering Taxpayers for Obamacare infractions, 230 enforcement, e-file issues, and regular business-but hey, we have had 3+ years of spend for jobs and look at us now, let's fingerprint efilers so we can be certain that they never touched a return. At our expense of course, then they can lock us all up as persons of interest, like a transaction of interest, which I still have no idea what that is. Have a great tax season all, it will probably be our last before the feudal system returns, 50% Max Tax, Etc....
Posted by: BRES | February 21, 2012 9:24 AM
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@jft, No, I am blaming the government and the taxpayers as well as preparers, as all three are aware that a change in exemptions will end the IRS holding money while they can save it themselves. No more, no less, just common sense. We all feel good when we see our clients get a large refund, but what drives the most are the corner preparers who mangage to get the max EIC for virtually every customer-I actually witnessed this from one guy in Luisville, KY while I was working with a bank to set up their RAL Department and saw a particular preparer and his location, reviewing the amount of RALs he was sending through this bank and they were close to 7 figures a month-1 guy. Hope that answers your question.
Posted by: BRES | February 21, 2012 9:14 AM
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I see several problems with this - first and foremost - the IRS takes down the e-filing system in October to get it updated and re-set for the new filing year - they had three months to figure this out.
They compounded their own problem by making more practitioners process returns electronically - I personally think it is the only way - but just saying.
But the biggest issue is that the government does not want to hand over the money - why I am not sure other than they are broke!! Last year it was taxpayers receiving large refunds that were held - My near perfect taxpayer - Sub S w reasonable compensation - filed early and it took 9 months and a call to the Taxpayers Advocate to get his refund. The biggest problem is that somehow the electronically filed tax return moved the AGI to line 7 and did not have the W-2's to support it - Try to figure that one out. Then it went to audit!!
If the IRS is going to demand the e-filing and deadline compliance the least they can do is keep their end of the bargin.
Posted by: numberchic | February 21, 2012 8:50 AM
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@BRES- are you blaming the taxpayers?
While I agree with you that more taxpayers should depend less on their tax refunds(and this story is a great example of why), let's focus on the real problem: the gov't getting interest-free money and using cheap excuses to keep it longer.
What would you say to a credit card or mortgage holder who wanted to keep money lent to them and not pay interest?
Posted by: JFTaxServices | February 21, 2012 8:33 AM
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All of us in a tax practice knew the IRS was the problem of having refunds delayed, YET they would not come forward with press releases to the media mentioned that fact. COWARDS.
Please IRS do NOT use us as shields because, frankly, I am very tired of hundreds, if not thousands of calls asking where the refund checks are. A little acknowledgement by the authority, the IRS, would have gone a long way in not wasting my time and patience in this entire matter.
I do hope a committee in Congress takes this issue up and scolds them for this poor handling of the situation. Breakdowns happen but cover up is much, much worse!! djb cpa :~(((
Posted by: DJBradach | February 21, 2012 7:23 AM
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One word, or form, W-4.
Posted by: BRES | February 20, 2012 3:22 PM
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Hi all, this is not difficult, the government is broke and broken. If you count on a refund as a forced savings, use a W-4, not the IRS. Pretty simple.
Posted by: BRES | February 20, 2012 3:21 PM
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What is ridiculous is that taxpayers like us are the ones who need the money back as quickly as possible to recirculate it out into the public with our purchases. To purchase vehicles, computers, homes, etc. When problems occur such as these, it makes people want to hold onto that money as long as possible, reducing the amount of money being recirculated into the public. In turn, this causes other things to start collapsing. People refusing to put money back into the market, even.
On another subject, people really need this money. I know, personally, I need it so I can go to see the doctor and to complete my degree for accounting. How am I supposed to do this when the IRS is not willing to give us any information on our refund status, OR even talk to anyone? What? Are they too busy to give their taxpayers reassurance that their refund is still coming to them? I have had many doubts in the capabilities of our government and this is just another one.
Posted by: jmarcotte2012 | February 20, 2012 1:43 PM
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