H&R Block software glitch causes delay of 600,000 tax returns

Hundreds and thousands of tax payers are irate today after finding out that their tax returns are being delayed due to a glitch in the H&R Block software used to file their 2012 taxes. According to a story published in the Los Angeles Times on March 13, 2013, the glitch has caused a delay of about 600,000 tax returns for customers who filed form 8863 for education credits.

A statement released by H&R Block reads, in part:

"H&R Block has confirmed with the IRS that there was an issue with a limited number of software company products that affected some tax returns filed between Feb. 14 and 22, 2013 that included certain education tax credits claimed on Form 8863. H&R Block has worked with the IRS to expedite a solution to this issue for all of our affected clients."

Customers who used H&R Block services and software began flooding the company’s Facebook page after the news broke about the delay. Many of them were flabbergasted about the error vowing to never use the company’s software or services again. Some customers are demanding refunds of the preparation fees they paid while others are calling for a class action lawsuit.

The delay has not only caused customers to experience a longer wait time to receive their federal tax refund but it has also caused a delay for students who are filling out their FAFSA paperwork for financial aid.

The Department of Education suggests:

  • If your return has not yet been processed by the IRS, you can manually enter the tax return data on the application.
  • Return to the online FAFSA to update the information when your return has been processed.

This information is posted on the FAFSA section of the Department of Education website http://www.fafsa.ed.gov/.

According to the statement H&R Block released on their website, the delay means customers will have to wait an additional 4-6 weeks for the IRS to review and process the affected returns. In the meantime, it will be interesting to see what H&R Block does to repair the damage that was caused to customers by the glitch in their software.

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, Knoxville Business Examiner

Jeff Sherwood has been involved with online marketing since 2008. He has his own blog, JefferySherwood.com, where he teaches his friends and family how to make money online through Internet Marketing. A student majoring in Business and Accounting, Jeff definitely knows the ins and outs of the...

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