Jan 31, 2012 7:17am

IRS Delays Refunds: Morning Business Memo

Some taxpayers who filed early this year may have to wait a week longer than expected to get their refunds. The IRS has been tweaking its computer systems to prevent refund fraud. A spokeswoman says the delay only affects taxpayers who filed returns before Jan. 26. Some file early to get their refunds as quickly as possible and urgently need the money to pay bills. H&R Block and TurboTax have posted notices to their customers about the delay. Taxpayers who file online can get more information from the “where’s my refund” section at the IRS website.

Twenty-five of 27 European Union governments have agreed on a new pact to enforce tighter budget discipline in the Euro zone. They also accepted the terms of a permanent bailout fund. But talks in Greece still drag on. The government is haggling with private bondholders over a deal to reduce Greek debt.

Unemployment in the Euro zone ended last year at 10.4 percent – a new record high. The biggest increases came in Greece, Spain and Cyprus as all three made public sector layoffs and announced spending cuts. The highest unemployment is in Spain, where 22.9 percent of the working population were without work. By contrast, the jobless rate in Germany fell to 6.7 percent in January, according to separate figures. This is a record low since figures for unified Germany were first published.

The US Treasury Department is seeking to borrow $444 billion in the current quarter. The latest estimate of borrowing plans for the January-March period would make this quarter the fifth highest for government borrowing. That’s because of the very large budget deficit.

Debt collection company crackdown: The Federal Trade Commission has announced a $2.5 million dollar settlement with Asset Acceptance Capital Corp. The company allegedly coerced borrowers into paying debts they no longer owed.

Richard Davies Business Correspondent ABC NEWS Radio

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User Comments

I’ll gladly wait if the extra time is needed to get rid of fraud. But it will probably only reduce fraud….if we’re lucky.

Posted by: newcountryman | January 31, 2012, 8:24 am 8:24 am

This is crap because I didn’t file until the 27th and my original paydate was the 8th and now it’s the 14th. The IRS pushed EVERYONE’s back, no matter when you filed! I’m so sick of them being flaky. They have an entire YEAR to prepare their systems. They owe us this money, yet they can give it to us whenever they please. Good ole’ government! Vent over… sorry!

Posted by: Debi | January 31, 2012, 9:41 am 9:41 am

May we the tax payers should stop caring whether the IRS gets its money in a timely fashion. Voting with you pocket book is the best way to make changes.

Posted by: snewsom2997 | January 31, 2012, 10:45 am 10:45 am

OMG!!!! my bills wont wait a week>>>>>>>

Posted by: Angie | January 31, 2012, 11:55 am 11:55 am

They told me after the l4th. I think it is a stall to get more money, I’m changing my deductions this year. I pay enough and they use this money for nothing..

Posted by: a. braun | January 31, 2012, 1:25 pm 1:25 pm

OMG!!! Me too, bills not wait and people calling threatening over the money.

Posted by: Donna Miller | January 31, 2012, 2:59 pm 2:59 pm

Seriously? They knew about the fraud last year! What were they doing all year? They should have been fixing this problem during the year. The system should have been up and running and ready by January 1st. Honestly, if I don’t get my refund by Thursday I am going to be really upset. I am trying to move into a new place, and depend on that money. IRS needs to get their act together.

Posted by: Stephanie | January 31, 2012, 5:23 pm 5:23 pm

Hmmm….I guess around April 15th I will “delay” what I owe to them. See how they like it.
The IRS needs to be dismantled and abolished in this country. They are nothing but a bunch of bullies who’s time has come and gone.

Posted by: Troy | January 31, 2012, 7:31 pm 7:31 pm

Getting rid of fraud is an excellent idea but who the heck signed off on doing it at the beging of the tax season?

Posted by: Greg | January 31, 2012, 8:12 pm 8:12 pm

So those of us that have bills to pay and rent to pay don’t matter. Just because, they are rich and can wait does not mean everyone else can. We all work hard and they tell us we can’t get the money we paid BACK until they are ready. Fraud has existed since I don’t know when. This is just BS.

Posted by: ASHES | January 31, 2012, 9:40 pm 9:40 pm

My refund is now delayed 6 days…that’s what I get for filing earlier than April 15th I guess. As others said, my bills won’t wait for their security upgrades. I mean who in the WORLD would EVER recommend such a STUPID upgrade DURING tax season?!?!? This government would. Be sure to vote this year – READ, LEARN and LISTEN to what these future “leaders” are saying. If you don’t know who to vote for, do us all a favor and don’t vote at all because b.s. like this occurs when the idiots pick idiots to run the country. Feel free to tweet with #IRSareIdiots just to make yourself feel better. It won’t make your money come any sooner, but it may cause you to make dramatic changes on how to take control of your own taxable withholding from this point forward….I know I will.

Posted by: Melissa | February 1, 2012, 9:50 am 9:50 am

This is B.S! When i filled mine I was told nothing about this and was told my check was going to be at the tax place on the 1st. I went to pick it up today and was told they don’t know when it will be there. I’m like most people I living paycheck to paycheck and was expecting my check to be there like I was told. This really sucks cause I already sent out check to pay bills thinking that the check would be there today. This is just more proof that our government is a joke. I mean come on why the hell would you wait till the tax season to make changes and wait till people have already filled to say there’s going to be a delay. Just another reason on the long list of reason our government sucks!!!!

Posted by: melisa | February 1, 2012, 12:55 pm 12:55 pm

I filed on the 25th, my return was in my account on the 1st. I have bills, too, but I don’t count on refund money to pay them. I count on pulling through, getting rid of non necessities, and sitting at home on my nights off work rather than spending cash anywhere else. Luckily, this will pay off my surgery, which I previously had set up a payment plan to cover until it was paid in full. It’s the government, are people SERIOUSLY surprised that they’re delaying giving people their money??

Posted by: Jennifer | February 2, 2012, 3:03 pm 3:03 pm

Filed on Jan26th had refund direct deposited on 03 Feb – 11 days faster than indicated – way to go IRS…

Posted by: Patricia | February 3, 2012, 1:19 pm 1:19 pm

I filed on the 26th so my return should have been in my account on the 2nd. Now when I go to the website it says if could take 6 weeks. How will I know when I should get it?

Posted by: Melissa | February 6, 2012, 3:23 pm 3:23 pm

Not sure how some people got their refunds so fast? I filed on the 22nd, was originally give Feb 1st as deposit date, then it was changed to Feb 7, and now Feb 8. Very frustrating.

Posted by: Theresa | February 7, 2012, 10:53 am 10:53 am

I filed on Jan 27th, was told by IRS on WMR that it should be direct deposited on the 8th of Feb. Checked yesterday, Feb 7th, and now it says ‘Your return has been accepted and is processing.’ Most of the people I work with have already received their refunds, and they filed after me, one filed before me.

Posted by: Brandy | February 8, 2012, 8:52 am 8:52 am

Accepted on 1/17 – DD date of 1/25 then changed to 1/31. Then said “processing”. It is not 22 days later and it is still in processing. This is bull. They should be working on the early filers BEFORE sending out any other refund checks to the people who filed after us.

Posted by: CourtneyLynn | February 8, 2012, 11:57 am 11:57 am

1st of all I know they say you should not depend on the income tax to catch up on bills, thats BS because most jobs are already not paying you what you are worth. Second the US Gov had no problem with taking my taxes out my check so I should not have a problem receiving my money back plain and simple…This delay bull about only affecting those before 1/26 is lies because it seems no matter what date you filed at random you can be delayed

Posted by: Marie | February 8, 2012, 4:26 pm 4:26 pm

This! As if the American people need any more of a reason to despise their already hated government.

Posted by: Rick | February 9, 2012, 10:04 am 10:04 am

This is B.S! When i filled mine I was told nothing about this and was told my check was going to be at the tax place on the 1st. I went to pick it up today and was told they don’t know when it will be there. I’m like most people I living paycheck to paycheck and was expecting my check to be there like I was told. This really sucks cause I already sent out check to pay bills thinking that the check would be there today. This is just more proof that our government is a joke. I mean come on why the hell would you wait till the tax season to make changes and wait till people have already filled to say there’s going to be a delay. Just another reason on the long list of reason our government SUCKS!!!!! THIS IS A POST FROM SOMEONE THAT FEELS LIKE I DO IAM A SINGLE MOM WITH 2 KIDS!! WHERES MY MONEY CAN YOU SAY OVERDRAFTS!!! THIS IS CRAP!!

Posted by: Juanita | February 11, 2012, 7:56 pm 7:56 pm

Seriously?! This is absolutely ridiculous! Apparently turbo tax didnt know about this either! We depend on that money to help our family make it through the year. We are a family of 5 living off 1 income! I am a full time student and my husband works. We pay our taxes and do everything that our government tells us to, And this is how they repay their loyal Americans?! Can somebody please tell me again why people want to cross the border into this country?

Posted by: nca | February 12, 2012, 4:13 pm 4:13 pm

I am irate! I filed my taxes with Turbotax on February 2nd with the understading that I would received my refund in 7 to 9 days (as I have in previous years.) I became concerned when after 8 days I still had not gotten a confirmation from the IRS that they had even received my return for processing! (I used the “Where’s My Refund” option on the IRS web page.) When I contacted the IRS via email to ask about this, I received a condescending email from them with no explanation but rather a link to the “Where’s My Refund” option. Now, after much public outrage, they have finally posted an explanation on their web site about the delays caused by “new tax laws.”

This is unacceptable! Unlike some people posting here I do not depend on this refund to pay bills or feed my family, but it’s the principle off it. The IRS should have had this handled before the beginning of this year! Their lack of organization and ethical practices is astonishing. Like most government organizations they have no regard for hard-working Americans.

I think the next time I owe any taxes to the IRS on April 15th I’m going to send them a letter stating, “I’m sorry, but I’m having delays in processing and getting my funds out to you. I will give you periodic updates on the status of my ability to send you your money. Until then, just keep checking.”

Posted by: EducatedLibrarian | February 15, 2012, 10:40 am 10:40 am

Its My Money & I Need it Now!!!!!!!!!

Posted by: Sarah | February 15, 2012, 2:45 pm 2:45 pm

No one knew this was going to happen, It just happened. I realize that the economy is in the toilet, people are not working or ar at low paying jobs ect, but come on! Just because your refund is delayed by a week or two everyone is having a hissy fit. Most people getting these large refunds are from the EIC and child tax credit anyway – you didn’t even pay in the money – it’s a freebie from the government in the first place. Who do you think that money is coming from? Me, that’s who – I actually pay my fair share of taxes – I support the roads, schools, fire and police, hospitals, parks; all the government spending it right out of our (the taxPAYERS) pocket. Not you tax credit GETTERS pocket. Suck it up, wait alittle longer, you’ll get your money because WE’VE paid it in. Think about that when you cash that check and are spending it on all the non-essentials instead of putting it away for the day you maybe alittle short on your paycheck. By the way – I’m a forty something, woman with average household income of less than $40,000. I also have a couple kids at home who I still support because of the crappy economy.

Posted by: Kathy | February 18, 2012, 10:38 am 10:38 am

@ Kathy,

Same old Republican covertune: “If you haven’t figured out how to work the capitalist system it’s your own darn fault.”

You’re missing the point entirely. What if someone’s child was sick and needed medicine but they were temporarily out of work? So they file their taxes using a business that assures 7 day rapid refunds, but due to an IRS “software error” they don’t get their money until 3 weeks later?

These people have every right to be angry and/or frustrated. It’s the poor and middle class that are always harmed in this country, not those with money that can afford to wait an extra few weeks for their tax refund.

Posted by: Juniper | February 19, 2012, 3:54 pm 3:54 pm

This is the same excuse that they used last year! I agree with other posters, why do they wait till refund time to do their upgrade? Lame excuse, their IT department needs to be fired!

Posted by: James | February 20, 2012, 10:27 pm 10:27 pm

I used an emerald card from H&R block so my refund would hit faster than it would my bank account AND I would save about 40 bucks. So yeah, I figured faster and less costly is better. I filed on Feb. 2nd. It is now Feb. 22nd and the funds still haven’t been posted. It’s been almost 3 weeks!!! And it definitely adds salt to the wound that I can’t do a single thing about it. Emails and phone calls will all end up with basically the same replies. “We’re the government, tough crap, the end.”

Posted by: Matt | February 22, 2012, 11:26 am 11:26 am

Filed on Feb. 06. Still have not received refund. Just checked ‘Where’s My Refund’ page on the IRS site and it says that I should receive my refund by Feb. 21. TODAY IS FEB. 22!

Posted by: Todd | February 22, 2012, 2:19 pm 2:19 pm

I filed on Feb 3., just received word that I’ll be getting my refunds on March 6. Are you kidding? I’m from Maine, a state notorious for taking FOREVER to send out tax returns. Well Maine had my money to me within 2 weeks! You’ve failed once again, federal government!

Posted by: Jennifer | February 22, 2012, 6:25 pm 6:25 pm

Actually niot all had to wait longer. The irs is just crap. My sister filed on Jan. 17 and she got her money 20 days later. My mom files on the Feb 8 or 9 and recieved her money on the Feb 23. Me, I filed on Feb. 3 and as of Feb 23 have not recieved anything and the bank says it doesn’t show anything for the next several days. How is this.

Posted by: Billy | February 23, 2012, 2:05 pm 2:05 pm

They keep saying this is effecting returns processed in January. I efiled my return in early March. At first they said via their “where’s my refund” section on their website that I would be getting my refund by March, 14th. Well that didn’t happen and I checked again and now they say by April 24th which is 3 weeks past when I need it to pay a big bill. Not sure what the story is…
I just know if effects more than early returns.

Posted by: Karen | March 15, 2012, 9:42 am 9:42 am

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