The Internal Revenue Service warned Thursday that tax refunds could be delayed a week this tax season because of new anti-fraud safeguards.
“The IRS has opened its filing season successfully this month, and refunds have started going out to many taxpayers,” the agency said in an email to tax professionals on Thursday. “As with the start of any tax season, there are system validations that occur requiring some fine-tuning of our systems. As part of this, some taxpayers will receive refunds approximately one week later than initial projections they may have received, but these are still in line with historical refund delivery times.”
The IRS noted that the one-week delay is related to the fine-tuning of IRS systems to adjust for new safeguards that were put in place this tax season to provide for stronger protection against tax refund fraud. The agency has come under heavy criticism for the increasing number of identity theft cases related to tax refunds, and it recently added more stringent measures (see IRS Steps up Efforts to Combat Identity Theft).
The IRS said it is providing additional screening for fraud this year before issuing refunds, but the vast majority of taxpayers can still continue to expect to receive their refunds in a timely fashion.
The IRS also noted that the refund time frames provided by the “Where’s My Refund” tool on its Web site are projected time frames and are subject to revision. “Many different factors can affect the timing of the refund after the IRS receives the return for processing,” said the agency. “The IRS apologizes for any inconvenience caused by the revised refund dates.”
The IRS noted that the delay only affects some early filers, and taxpayers whose returns were accepted by the IRS on or after January 26 would not experience the delay.
When the IRS announced the opening of the 2012 filing season, it advised taxpayers who electronically file and select direct deposit that they could see their refunds in as few as 10 days and 90 percent of refunds are provided within 21 days, the IRS added. Some taxpayers are getting refunds much faster, according to the agency, but at this time taxpayers should expect refunds to be issued as indicated in the original IRS guidelines.
An unplanned outage of the IRS's efile system also apparently led to trouble, according to KION TV's Central Coast News, and visitors to the Where's My Refund tool saw error messages. Agents with Jackson Hewitt and H&R Block have also seen a statement from the IRS about the problem, according to News Channel 7 in the Carolinas. The statement indicated that problems with the IRS's fraud screening and detection process could have an impact on 60 to 70 percent of the returns accepted before 11 am on January 18, and as part of testing on January 10, 11 and 12.
26 Comments
Taxprep1111 - not all individuals who file their taxes early are fraudulent taxpayers. I file early due to the need to "get it out of the way". I am paying over $8K in taxes this year. I know the type you're talking about - and they are everywhere. But please don't go making outlandish generalized statements that those individuals who file early have a greater propensity of fraud. It's unprofessional and reflects poorly on whatever company you currently work for... Most tax prep companies offer a service of a rapid refund with a refund anticipation loan. Getting a refund of $5K or more is a small price to pay for the "baby mamas and daddies".
Posted by: mm728 | February 4, 2013 2:30 PM
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In my opinion, we should be able to trust our government to return what is due to us when they say it will be there. However, this is not the case. Some people, such as myself, a hard-working, single mother of one, depend on that money just to get by. Now, after sitting here for almost two weeks, my refund still hasn't been deposited onto my Emerald Card (H&R Block), and I am finding myself behind on bills even more so. Ask any tax payer (with kids or without) we plan all year long for these refund checks, whether it is to purchase a new vehicle, catch up on bills, pay tuition or just to be able to financially breathe for once. I, myself, have been raising my daughter alone since she was born, and every year I count on my refund check to pay off bills that I can't afford to pay throughout the year. Tax-Time in my home is better than Christmas. As a single mother, who doesn't recieve child support, my refund every year is key to living financially stable during the year. Making minimum wage and supporting a child isn't easy, as I'm sure a lot of you out there know, and having to wait weeks on end for what is rightfully ours anyways, is ridiculous! I, like all Americans, realize that tax-paying is mandatory, as much as it sucks. But being hard-working Americans, we deserve not only to know when there is an IRS glitch (and in a timely fashion) but also to recieve what is ours, also in a timely fashion. In a nutshell, you really can't trust the IRS, or our government, especially with anything financial. I may just sound like another whiner, waiting for a check to arrive so I can buy frivolously, but really, I'm just another peeved-off taxpayer with a child to raise and bills to pay.
Posted by: LShaw86 | February 4, 2013 4:27 AM
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Hey I am just a tax preparer but I too have been caught up in the IRS funding delay. Its not my fault and its not my companys fault. I jaut want to remind everyone out there that ses a servie to have them done.Please dont go in the office yelling and screaming about where is your money. Remember we too pay taxes and not only that but how do you think we get paid by the fees you pay for us to do them so....if the IRS is delaying the funding that means its delaying our money too so YOU arent the only ones bgeing affected by this
Posted by: taxgirl44 | February 18, 2012 5:00 PM
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I want to share with the REAL TAXPAYERS just a few that come to my office:
a lady with 8 children, which all had different last names, she states she is SINGLE, and files Head of Household! Refund is over $9000 - she paid zero state and federal taxes - this free money comes from you and me...the taxpayers
A 21 yr old "man" comes in with 8 yr old boy - stating he is the STEPFATHER and has carried boy for over 5 yrs! - do the math 21 - 5 = 16 this means the "Man" was carrying the "BOY" since he was 16 yrs old! When I asked him when he and the mother of the dep was married, he stated "they never were - he just calls himself the stepfather"! Needless to say, I didn't file his taxes and sent him on his way. Tax preparers can be fined over $500 per return on fraudulent EIC returns! I WON'T CHEAT ON MY OWN TAXES AND I WON'T CHEAT ON ANYONE ELSES! Most people who do the right thing can't believe people can get over $6000 back and not pay 1 cent in taxes! IT HAPPENS EVERY DAY. In fact, the majority of persons filing in January through the 2nd week in February NEVER PAY TAXES! They are the ones filing EIC, have a huge return they can't wait to get back. The IRS needs to put in more FRAUD DETECTION software such as 1) a check to see if there is a marriage license on the SSN of each Head of Household filed return (At tax time, everyone is all of a sudden SINGLE! 2) Let's pass a bill of a "TAXPAYERS SHACK UP LAW - if the mother has over two dependents with different last names and swears she is single, never been married (Remember the one with 8 children and all last names were different -but she is SINGLE!) then YOU ARE INELIGIBLE FOR EIC!!!! Let's get real, the income is only $9,000 - 13,000 per year, you have 3 children, and no one is helping you (Except food stamps) - that's impossible! Someone has to be in bed with you if you just had a NEW CHILD last year (Unless immaculate conception occurs in over 50,000 households per year! THESE ARE THE FRAUDULENT RETURNS FOR EIC (They even have maternity leave from work on the W2! Compare the SSN with the Marriage certificate SSN and the Birth certificate SSN (which should be required at the birth of all these EIC babies) and the IRS would catch more fraud than they have employees to manually handle them! You see, each HOH (head of household) can have a counterpart, yes, it is the OTHER PARENT who is also claiming HOH and carrying Deps, and getting EIC TOO! PAYING ZERO TAXES! The other spouse will use another address, use direct deposit for the funds to be placed in, and they get the FREE FUNDS!!!! now your EIC is almost DOUBLED.... now this is why your refunds are being delayed....and now you know!
The real tax payers start in late February through April, itemize deductions on their returns, and have very little if any refunds and sometimes, even have to pay in taxes because of not having enough taken out of their paychecks. People owing a lot come in the last 2 weeks of April - they don't want to pay until the last minute and I don't blame them. We sit for hours in our offices without one client in weeks from the 3rd week of February until the last week of March. Then everyone comes in at same time, fill up the lobbies, and complain because they have to wait! Yes I am upset - I pay taxes - and you should be too!
Just a taxprep!
Posted by: taxprep1111 | February 18, 2012 11:24 AM
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P.S. I am "JUST A TAXPREP" ... Jackson Hewitt does have the Refund Anticipation Loan, and you can get some of your money back within 24 hrs - I know, because I'm doing this daily with my tax clients.
Just a Taxprep
Posted by: taxprep1111 | February 18, 2012 9:54 AM
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I work For a major Tax Service - the complaints by the individuals about receiving their refunds on time I can empathize with. But these people need to realize, THEY ARE THE ONES WHO PAY THE TAXES and the IRS is trying to catch the ones WHO PAY ZERO TAXES _ CLAIM EIC ON THEIR RETURN _ AND GET THE HUGE REFUNDS BACK!!!! The new MeF tax system the IRS introduced flagged 60 - 70 percent of the first (MILLIONS) of tax returns as possible fraud. Believe it or not IT IS TRUE!!!! The 2nd largest fraud in America is EIC!!! THere are some who actually deserve this, use THIER OWN REAL CHILDREN as their dependents, and get the refund. THEN THERE ARE THOUSANDS, MILLIONS, who file with other persons children, get thousands of $ in refunds they don't deserve, and they can't afford to pay these funds back when they get caught! THey don't work regularly, don't pay taxes (getting EIC - even the Fed & state withholding is given back along with $thousands for the illegally claimed dependents. THEY DON'T PAY TAXES - If the IRS doesn't catch them on the front end, i.e.; the new IRS system, then you, the real taxpayers, are going to keep paying in taxes to give to these frauds which will never be paid back!
Please be patient, the IRS is working hard to get these refunds to THE REAL TAXPAYERS AND REFUND RECIPIENTS, but at the same time, they must CATCH THE FRAUDULENT RETURNS that your tax dollars are being paid to. It may take you some time to get your refund, but don't you want this FRAUD by these misfits in our society stopped? Isee it daily, and am trying to help.
Just a taxprep
Posted by: taxprep1111 | February 18, 2012 9:53 AM
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I have helped people file and prepare taxes for the past 10 years. I have never ever seen the IRS in as bad of shape as it is in this year ever. I myself had filed a 1040EZ return this year. Now normally I receive my return with 10 days. I filed on the 17th and was accepted on the 19th. I should have had my refund on the 25th of January. Well when I went on the WMR site and checked it originally said the 25th. But that day came and went. So I waited a couple more days and rechecked. This time it said the 22nd of Febuary. I was royally pissed off and called immediately to the IRS. I was told that my return got caught in the "system glitch" and that the IRS had up to three weeks to legally process my return. I tried to explain to the lady that the date that they gave me for the 22nd was alot longer than 3 weeks. She then told me that there was nothing they could do and I just had to wait till the glitch was fixed. So I waited a couple more days and rechecked. Now my date says the 14th of Febuary. I am not even really counting on receiving it that day either. I guess it will get here when it gets here. This year the IRS implemented a new system but never did a test run on it till they opened up for efiling. What a joke. I beleive that they just dont want to give us our money or maybe they dont have it. Who knows anymore. All I know is that I dont trust them one bit.
Posted by: jbskeywest | February 6, 2012 10:53 AM
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A week is great!No problem!Anyone remember last year though when returns were delayed up to two months (like mine was). I was one of the poor saps that got the first homebuyer tax credit, got stuck paying it back(unlike the lucky latter group that got the credit free and clear) and then had to wait over two months because of some supposed software glitch. Shouldn't happen to taxpayers who's taxes come straight out of there paycheck because Uncle Sam didn't have to wait for his money and neither should I!
Posted by: Jamesrgiant | February 6, 2012 8:00 AM
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This is not fair.
Posted by: Discolady71 | January 31, 2012 7:18 PM
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What if the IRS got their money from taxpayers on a "delayed" basis. Leaving them to wonder when they will get their money.This was definitely not cool to do to people who are waiting on funds to pay bills and live on. They dont realize the seriousness of this nor do they care. This matter should have been delt with much sooner then to pick tax season to make an announcement explaining this matter. This is totally unacceptable.
Posted by: Discolady71 | January 31, 2012 7:13 PM
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I OWN A TAX OFFICE IN BEAUMONT TEXAS, WE STILL OFFER RAPID REFUND CHECKS ARE THEY ARE COMING IN THE NEXT DAY, ONLY 1500 AND THE REST OF YOUR CHECK WILL BE IN 7-10 DAYS, THE COST IS 61.22
Posted by: JTHIBODEAUXTAX | January 30, 2012 2:12 PM
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For up to date real time discussion of the IRS's 2012 tax refund delay please visit http://http://www.igotmyrefund.com
FreeFiler through HRB
Filing Date: 1/17/12 22:15 EST Accepted Date: 1/18/12 14:53 EST WMR Date: 2/7/12 processing (unchanged)
Current as of 1/29/12 19:47 EST
Posted by: rjrotheryjr | January 29, 2012 8:43 PM
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It's because of stories like JenniferN2213 that I chose to go forward with the news to expose the problem. It's sad that I hear so many that are being evicted, having their utilities shut off, not being able to even eat because the IRS failed to issue a statement when the problem first came to be. Had the IRS issued a statement on the 17th when they noticed the issue, those that were filing their taxes could have been notified immediately that their refund would be delayed. Would that have fixed everyone's situation, probably not, but I am sure most would not find themselves in the holes they now are in. I do not blame bad planning or bad judgement to those that now find themselves in bad situations, as we have always in previous years been able to rely on this money on time. We each count on our paycheck each week and rely on that. We should have been able to do the same with these checks. I believe this to be poor judgement on behalf of the IRS to try to cover the problem and only releasing the issue to the public after being confronted by the media.
Posted by: Michellemarie926 | January 28, 2012 9:40 AM
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Oh and I paid $14.80 cents to do my taxes through HR block online...I had to pay for the basic version (and I found a coupon code to make it cost less) because I had self-employment. You don't need the rapid return anymore ***except it would be nice right now, because the IRS normally gets your money to you after 7 days.
Posted by: JenniferN2213 | January 28, 2012 2:08 AM
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Those of you who don't have dependants and don't get special credits need to figure it out. We paid in exactly the amount that we were supposed to in order to cover the taxes we would have owed.
On about $50,000 income, we paid in $4,800. I worked as a freelance writer so I had to pay about $600 in taxes for my $5,000 income...BUT....
We have 2 children so that automatically gives us $2,000 back no matter what. Then we also got to deduct my home office, my laptop computer, my desktop computer, and a few other things so we are getting $4,093 back.
This is not overpaying or giving away money to someone to hold on to for the year, this is credits that we get back after paying only the exact amount in taxes we need to.
That is why people look forward to doing their taxes when they have children or if they are eligible for the EIC (which we did not qualify for this year but have in the last few years which made our returns close to $6,000).
I would be too scared to have my husband claim less dependants and get more money each month rather than paying that money in because money is always tight for us and we cannot afford to owe the IRS any money because each month we have exactly enough money to live on.
Right now we're being evicted because we didn't get our tax return on time so now we have to find a new place to live before the final eviction judgement goes through or we will be homeless. This WAS poor planning on our side because we thought that we could rely on the IRS to give us the money we are owed on time, but how can you help it when you have Christmas, your daughter's birthday ON Christmas and our other daughter's birthday 2 weeks after Christmas along with cut hours because my husband's company isn't even making enough money to break even and missed days because of snow. (I can't work outside of the house because of 1. It would cost more in daycare and gas to even break even, and 2. I have agoraphobia which means that I have severe panic attacks every time I leave the house by myself and for some reason I don't qualify for disability.)
Posted by: JenniferN2213 | January 28, 2012 2:07 AM
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Since H&R Block only offers instant rapid refunds. Paying HR Block $200+ to due your taxes for a 8-12 day refund is nuts. When you can goto HR's webstie and do the same tax return and efile it for free. And you'll have yout refund in 8-12 days just like going to a office and paying. I learned this last year when I to my local HR office.Woman got all done doning my taxes and with my $50 off coupon my total came to almost $300 bucks.For Federal and N.J.tax returns prep fees,efile fees and emerald card fees. I'm signing all the forms and get to the refund fee forms and noticed it said I'd have my refund in 8 to 12 days. I said to lady I want the 2 to 3 day rapid refund. She tells me they no longer have that. She says we only have instant and 8 to 12 day rapid refunds. I said to her if I'd had known that you didn't offer 2 to 3 day refunds. I wouldn't be here I'd be at home using HR's website free 8 to 12 day tax return service. So I didn't sign any more forms. Took all the forms I'd already signed and ripped them up. I told her I was going to use their website and file for free. Best part of it all is I ended up getting almost $700 more using thier free service. And my refund was direct deposited a week later. In my area the only tax service company that still does rapid refunds taht not instant is Libery Tax service. They offer a rapid refund based on aceptance of your tax return by the IRS. Only thing is the loan fees are based on your credit rating and the amount of the loan. If you don't have a credit score of 750+ the loan fees are out of this world. They do let you to have someone co-sign for the loan. If your loan app is not approved or to lower the loan fees.
Posted by: LusHKiLL | January 28, 2012 12:35 AM
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To Ronnie ... just a heads up .... H&R does not have rapid refunds this year or last year. That product was canceled by HSBC. John
Posted by: jrm1969 | January 27, 2012 6:33 PM
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Well said unknown! When are you people going to get it? You withhold this money from your checks all year long only to wait for a refund at the end of the year. Why??? Would you give $10,000 to a stranger to hold for a year only go get the same amount back with no interest gained? If so, call me I'd like to borrow from you!That's basically what the IRS is doing! Keeping your monkey, earning interest and paying you back your principal only. As bad as the economy is, you should opt out and get more on Your paycheck throughout the year!
Isis, Broker/owner, JorJa Peach realty & investments, LLC, CDPE, SFR, Short Sale Consultant.
Posted by: As0913 | January 27, 2012 1:42 PM
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I agree Michellemarie926. I was also informed when I spoke to an IRS representative last week that the IRS had performed some "unscheduled maintenance" on IRS systems that resulted in tax returns being lost. They informed me that this would not cause a delay in refunds, which obviously is incorrect, but it would have been nice to be able to let clients know there was going to be a delay.
Posted by: delishagaines | January 27, 2012 12:28 PM
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So I pay for H & R to do my taxes and get rapid refund. Im told January 25th funds will be available. Well, no funds. If Im late on my taxes, I get penalized. If The IRS screws up, theres no penalty for them. So I paid for speedy refund, and here I sit broke. Thanks again IRS, your full of cr@p!
Posted by: Ronnie | January 27, 2012 10:07 AM
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Perhaps they could have saved themselves some work by issuing a statement sooner. This might have eliminated numerous phone calls, and people overloading the computers by feverishly checking for updates.
Posted by: janet101 | January 27, 2012 9:58 AM
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When I submitted my taxes electronically that same morning I received confirmation that IRS had received and approved my taxes, The reply indicated refund by 2/1/2012 the same date was indicated in the PDF file from the IRS website but today when checking on IRS "Where's my Refund" the date has been delayed to 2/14/2012. Looks like total and mass confusion at the IRS to bad they only had a year to test and get this all working properly.
Posted by: benusmc | January 27, 2012 3:43 AM
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I find it interesting that the IRS makes the decision to send out a statement/bulletin 10 minutes after being contacted by my local news network claiming a glitch in the system due to the adjustments of new safeguards against fraud. Maybe issuing a statement 10 days ago when the real problem started would have been great. Guess they should have also warned the IRS phone reps to keep quite on what really was going on. According to the IRS reps that I spoke with, as have hundreds more people, the returns that were sent in early by the tax prep places overloaded the system causing millions of returns to be "lost in the old IRS system" Yes, that is the term the IRS rep used while explaining what exactly happened to my return. According to them, my return is now stuck in the old system until it works it's way out into the new one. Until then, I as well as a million others, get to sit back and wait while millions of new returns get refunded. If this information is false then shame on the IRS phone reps that are giving false information to hundreds upon hundreds of people that are flooding their phone lines. If this information is true then shame on the IRS for not owning up to their mistakes. At least they had the decency to warn people and tax preparers 10 days later that there is in fact an issue. Thank you Fox 2 Detroit for blowing the lid off of this and making them admit there's a problem.
Posted by: Michellemarie926 | January 26, 2012 11:37 PM
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Dear Unknown,
That must be your actual knowledge of taxes. Some people, including myself, qualify for credits that increase the size of a tax refund. Therefore, it is NOT poor financial and tax planning to be counting on a refund.
Here's some advice for you: think before you speak.
Posted by: mattinohio | January 26, 2012 10:00 PM
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Really Deelish30? It is really poor financial and tax planning to let the IRS accumulate money through excess withholding to be paid back in the form of a big refund. Good planning is breakeven. Better tax planning is to end up with a (very) small balance due. Then the IRS and the government has not been using the taxpayers money for free. Then you wouldn't be screaming 'GIVE ME MY MONEY!!!'
Posted by: Unknown | January 26, 2012 9:42 PM
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I think the IRS is full of crap!!! Everyone in America wants to talk about how bad the economy is affecting people but no one wants to do anything about it!! People have been waiting all year for this money that they've so faithfully given to our wonderful government! So "We apologize for inconvenience" does not suffice for the IRS's malfunctioning software!!! GIVE ME MY MONEY!!!!
Posted by: Deelish30 | January 26, 2012 7:50 PM
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