The Internal Revenue Service delayed tax refunds early this filing season for 7.8 million tax returns, according to a report by the Treasury Inspector General for Tax Administration, which also described steep cutbacks in customer service at the IRS.
The report, which provided interim results of the 2012 filing season, noted that taxpayers who e-filed their tax returns early in the 2012 filing season experienced delays in receiving their tax refunds due to fraud detection efforts and problems with the IRS’s Modernized e-File system. The number of tax refunds delayed had most recently been estimated at 6 million (see IRS Commissioner Shulman Address Tax Delays).
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