H&R Block is sending $25 prepaid debit cards to the customers affected by a tax-filing glitch related to education tax credit claims.
This past tax season, hundreds of thousands of Block customers found their tax returns delayed, thanks to changes in Form 8863, “Education Tax Credits,” by the Internal Revenue Service, which added extra questions to the form and required tax software to answer them with N for No and Y for Yes (see 600,000+ Tax Refunds Delayed by Education Credit Glitch). A large proportion of the delayed tax returns were filed by H&R Block, and Block president and CEO Bill Cobb apologized for the problems last month. A number of lawsuits were filed by Block customers, who also posted angry messages on Block’s Facebook page. The IRS had initially estimated that it would take six weeks for the affected taxpayers to receive their refunds, but it later shortened the estimate to two to four weeks (see IRS Shortens Delays for Education Tax Credit Refunds).
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