BLOG » IRS Admits Tax Return Processing Delays

March 11th, 2013 at 1:41 pm — By R&G Brenner
IRS delayed tax refunds IRS Admits Tax Return Processing Delays

IRS Addresses Delayed Refunds

As many taxpayers now know, this tax season has been anything but a walk in the park. The irresponsible last minute negotiations of our elected officials saved us from going over the fiscal cliff, but it also delayed the filing season by two weeks–the latest start to the tax season in history.  Even with the late start of the tax season, many forms were not ready to be accepted by the IRS.  Only last week did the IRS finally announce that all tax forms were ready to be accepted.  However, it appears the problems are now starting to show.

H&R Block (HRB) recently released a statement indicating that they mistakenly filed tax returns containing delayed forms too early.  Instead of receiving their refunds, HRB clients instead received a notification from the IRS.  Complicating this fiasco even more, is that some taxpayers refunds have been delayed but haven’t been notified.  When they contact the IRS or check the “Where’s My Refund” section of the IRS Website, they can’t even confirm that their tax return has been received or even being processed.  Furthermore, these problems are not limited to HRB clients.  Popular Do-It-Yourself tax programs like TurboTax and other tax pros are reporting similar delays.

@taxgirl reported that the IRS is attributing the problems to the revamped form 8863:

This weekend, the IRS announced that the revised form 8863 appears to be giving taxpayers fits. The revised form included check boxes at lines 23-26 which were added to confirm basic qualifications for taxpayers claiming this credit. They look like this:

EDU credits IRS Admits Tax Return Processing Delays

Look familiar? According to IRS, if you don’t check the boxes, “there will be a delay in the processing of the taxpayer’s return.” Apparently a number of taxpayers are overlooking the check boxes, causing the delays.

It is still early, and I expect this problem to be more widespread and caused by more factors than are being reported.  When you factor in the delayed filing season, delayed forms, extra due diligence for lower income taxpayers claiming the Earned Income Tax Credit, the sudden and unexpected halt to the IRS’ Paid Tax Preparer registration & continuing education requirements, the IRS transitioning solely to it’s new Electronic Filing system and the well documented and increased instances of Fraud & Identity theft hitting the IRS, there is a recipe for disaster and some serious refund delays.  Stay tuned… 

UPDATE 3/12/13:

As many as 3 Million taxpayer could be affected by these delays.  What is most frustrating taxpayers is that they received notification that their tax return was accepted many weeks ago, yet when they check “Where’s My Refund” there is no information.  This is being dubbed the form 8863 “Debacle” by some.  The news is even worse for H&R Block clients.  HRB is claiming that the IRS did not make them aware of the changes made to the 8863.  So what was supposed to be a couple week delay is now taking “a few more weeks” on top of the initial delay.

Sources: Forbes & ABC

Related posts:

  1. IRS Delays Accepting Returns Until Jan. 30th
  2. Software Glitches Still Causing IRS Refund Delays
  3. IRS To Process Depreciation & Education Credits This Week
  4. H&R Block Files Client’s Tax Returns Early Delaying Refunds
  5. NY Delays All Refunds Until April 1st

Category: Tax & Financial News, Where's My Refund? 33 comments »

  • http://www.facebook.com/linda.bumpass.5 Linda Bumpass

    Recipe for disaster.  I like how all of the senators and house reps are so smiley like they don’t have a care in the world after causing a gigantic cluster for so many families.  No big deal.  Not their bills getting shut off.  Good thing it is spring since I saw several who will have their heat and phone shut off in the next few days.

  • http://www.facebook.com/linda.bumpass.5 Linda Bumpass

    When are they going to announce that we have another month to file?  Long story, but their delay on a family members return who was going to pay me back lent money means I may not have the money to pay a tax preparer.  I’ll have to buy some software and do my own taxes.  Would be nice to get another month since I would have already had that money had they not created a disaster.  Woof in some air K now holding my breath;-)
     

  • samscott

    We filed on Jan. 26th with the knowledge that the IRS would not accept our return until the 29th. We finally got an email from the IRS on February 12th stating that our return had been accepted. As of today, which is March 11th, we still have no refund and the IRS website only states that our return is “still being processed”. I would like to know when the IRS will start paying tax payers interest for every day past 21 days that they are late on getting our money to us….God knows government entities charge interest for every second that we owe them money!! 

  • Bmx Mom3

    Ours was accepted on February 15 and today March 12 I am getting the same “still being processed” as you are seeing.  My frustration is mounting.

  • rgbrenner

    I wouldn’t hold my breath on that one Linda.  We have received no indication that IRS intends to extend the Tax Season even in light of their late start.

  • Staceydotta75

    i filed jan 26,2013 with hrblock, got notice on jan 31 that it was rejected due to identity theft number being needed. i called irs after waiting on hold almost an hour i finally got ahold of someone and she asked me a thousand questions and gave me a pin number but not before asking her what happened and why my refund was being red flagged she stated that in 2009 the irs system was hacked and i was one of the victims along with around 55,000 other ppl. i called hr blocak gave them the pin and they resent in on feb 2, it was accepted feb 5th, ive been given two different dates, first i was given the 19th then the 26th, its middle of march and i have called several times to find out what is going on. ive been told everything from they lost my refund to they dont know what to tell me to the last one a few days ago told me to give it 6-8 weeks from feb 20th because they trieed to process my claim on the 19th and it was rejected again and noone has looked at it since. there was one lady who actually told me it was thier fault that my identity was stolen i almost laughed and reminded her that it was because thier system was hacked. she then told me she didnt know what i was talking about and she didnt believe that to be true and wanted to know where i heard it from. i told her from one of her coworkers. i want to make a compliant but who do you complain to about the irs.  im soo pissed they are treating my case like its my fault.. is there anything i can do to get this resoved quickly.??? i have calle the tax advocate line and was told they couldnt help untill i get an eviction letter or a shut off notice. i dont want to wait around for that to happen. im trying to avaoid that problem…. please respond, i need advice. thank you

  • http://www.rgbrenner.com/ R&G Brenner Income Tax

    Unfortunately, there is very little you can do aside from contacting the taxpayer advocate and/or your local congressperson to file your grievence. Also, regularly check for updates on your refund with the IRS and your HRB office. In the future, When dealing with the IRS it is very important to note the name and employee ID of the people you are talking to. We have first hand experience with getting conflicting answers from the IRS. There used to be an old saying in the industry: “Call the IRS 3 times with the same question, and you’ll get 3 different answers”. I’m sorry R&G Brenner can’t be of further help in expediting your refund. Once your return is in the IRS’ systems, the speed in which they release refunds is entirely up to them.

  • http://www.facebook.com/andy.walker.5015983 Andy Walker

    Hey everyone, guess who got screwed? I had my work put in around mid January, but then they decided to to push back processing until February 14th for student refunds. I wait until then and I call because after the 14th I receive no sign of receiving it. They tell me wait 21 days (I call on three occasions). I struggle to stay on my feet for three weeks, and still no refund. I call AGAIN, and because of the crackdown on identity theft I’m told my refund hasn’t even processed! I wait longer, and even file for hardship, but apparently it’s assumed nothing will be resolved until May! So, in an attempt to “help” me, I’ve been denied my money for almost five months, and put into an financial hole that could have avoided! The damn hardship component is worthless! Thanks for nothing! I might as well pack my stuff, because at this rate I don’t see myself keeping my apartment. All I need is the tiny amount I’ve been granted to cover the bills for a month while I get my footing, but no, that’s too easy.

  • beenwaitingsincejan

    what does it mean if your account transcript is totally blank when ordered at diff times and you’re unable to order the return transcript? some have told me that it means i’m not done but i’m wondering if it means more than that….i’m wondering if it’s not even being processed at all.

  • http://www.rgbrenner.com/ R&G Brenner Income Tax

    Not sure. But you should contact the IRS and speak to a representative to get a clear answer…

  • camile123

    I mailed my return Feb 8 which i did myself through turbo tax since I was red flagged by the irs because someone else decided to claim my son without my permission. It is now March 23 and I still have not heard anything from the irs and when i look online it cant give me any info about my refund and I’m so frustrated with the govt right now. Every time I call i can never get a live person on the line just automated systems and at this point i don’t know what to do. I was relying on my refund to move but now that’s being put on hold because the irs has yet to issue my refund. Any advice anyone?

  • http://twitter.com/StevePappy Steve Johnson

    Filed my return on 3/2 simple single return no extra forms or stuff like that and am still waiting..i filed through TurboTax, also I havent recevied anything in the mail from the IRS

  • Guest

    How about the new IRS notice- “Please call us regarding your return.”

    No other information provided which is unusual for IRS notice.

    It’s the new “double secret” anti fraud system. I know someone whose 2011 return was flagged and told by IRS that they were just checking for fraud and everything else ok. But they still have not received refund seven months after filing for refund for return on extension. IRS says still processing.

  • john

    Mine was accepted on Feb 14 and till this day April 25 I still have not received my taxes.

  • http://www.rgbrenner.com/ R&G Brenner Income Tax

    Have you checked the online status of your return? If so what does it say?

  • Fred

    Really – that’s a silly question don’t you think – I’m sure he has checked the online useless “where’s my refund” – and the only thing it tells him is “processing”

    And not only that he is not the only one! There are a lot of us still waiting from January & February and NO we are not are from H & R Block!! Nexted your going to ask him, have you called the IRS. To which he can respond and tell you they are useless as well and tell you wait 30 days, wait 45 days, wait 60 days, you’ll get a letter, or better yet just hang up on you because they dont know either.

    Some people received 4464 letters in error, some people received CP05 letters in error, so people never received letters but were told they did, we are told if you can order a transcript that means your return is down processing and you will get your refund soon – then we are told thats not true ordering a transcript means nothing, we are told by IRS reps people who filed early are being punished for filing early and are all being audited or investigated, income being verified, refunds not being sent until the end of the year, we are told many stories by IRS reps. The fact is no one can tell us what is going on!

    https://ttlc.intuit.com/questions/1783896-cp05-march-cp05-ers-please-share-your-updates-here-mine-is-dated-3-18-2013-return-transcript-cycle-has-20130805

    https://ttlc.intuit.com/questions/1746993-to-anyone-that-gets-a-dd-after-getting-a-cp05-reveiw-letter-please-post-here

    https://ttlc.intuit.com/questions/1786929-recieve-a-4464-got-your-transcripts-no-ddd-yet-post-here

  • Coconawty

    i filed jan.19th, it is May 8…hmm

  • Coconawty

    sorry, i meant feb.19

  • Ct tax

    I filed for the adoption tax credit with my taxes filed on 2/24 and have been told by the IRS that my return continues to be processed with no other explanation. I contacted the tax advocates office after learning that my receipt date was changed twice to now make it appear as though I filed on 4/9/13. The tax advocates office informed me that I am being investigated for failure to report the proper income..the problem stems from the adoption credit but they the IRS refuses to acknowledge this and instead blame me. H&R block completed the return.

  • BreLove

    I filed and it was accpted on 2/15 and its May 15 and still nothing

  • BreLove

    I agree filed on 1/26 rejected do to education credits. filed on 2/14 accepted on 2/15 and its may 15 nothing yet and all i get is processing i called and they said there were no problems and they are not sure why it has taken so long

  • http://www.facebook.com/phelanpinschers Sharon Moore

    accepted 2/14/2013. went through ID verify 2nd week of March and still not a refund to be seen!!!!!

  • http://www.rgbrenner.com/ R&G Brenner Income Tax

    Did you file with HRB?

  • http://www.rgbrenner.com/ R&G Brenner Income Tax

    Hi Steve, any update on your refund?

  • http://www.rgbrenner.com/ R&G Brenner Income Tax

    Have you received your refund yet?

  • Pingback: IRS Commissioner Fired Amid Scandal; Where’s My Refund! | R&G Brenner

  • http://www.rgbrenner.com/ R&G Brenner Income Tax
  • brethomas

    I filed feb 14th still nothing its now may 16th……

  • sheryl108

    I filed my taxes on Jan, 26 and they were excepted on Jan 30. Then I check on my refund and was being processed so I called the IRS, and kept pushing 0 to talk to a live person, on Feb 18, they told me they couldn’t find my name or social, I then got pissed hung the phone up, turned around and called them back (maybe 5 min later) then told me that I was flagged because of ID theft, and that HRB had made the mistake and they was at fault because my SSN was being flagged on HRB screen. I filed the right paperwork for this ID theft thing, the IRS told me I would receive my money in the next 6 weeks. April 8, 2013 comes around and NOTHING, I called them back on April 8 they told me 6 more weeks I had to wait, today is the 6th week, I then went to “WHERE’S MY REFUND” AND IT SAYS STILL PROCCESSING… The IRS is full of crap and HRB is worse… So I have already contacted my lawyer on this matter and should be getting my refund in the next 2-4 business days

  • http://www.rgbrenner.com/ R&G Brenner Income Tax

    I hope you do. Please keep us informed of the situation.

  • bastogne

    how is it a lawyer able to get it sooner and faster than the normal working guy?

  • zeus9896

    i filed my taxes threw H&R blocks free web site feb 12, 2013 and since then the irs has done nothing but tell me 6 to 8 more weeks. now mind you i have called 3 time at a 6 to 8 week delay so its been 3 months and still no refund. i called the irs again on monday the 20 when I was told my check was to be released and guess what NOTHING now there saying there computer says its there but there is no release date its pending. so my question is why and when will my check be released.

  • stephanator

    accepted on 02/14/2013, today is May 23rd and I’m still waiting!

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