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TurboTax processing error rage continues: Hundreds of refunds held up

The TurboTax Facebook page reflects a customer service nightmare as hundreds wonder where their anticipated tax refund direct deposit is.

As reported on February 3, many who filed their taxes using TurboTax and had their fees taken directly from their refund may be getting a paper check instead of direct deposit. Those expecting a deposit in their bank on February 4, 2011 were informed by email that an error was made on the part of TurboTax and they would have to wait for a paper check from the IRS.

For background on the TurboTax problem read: TurboTax screws up: E-filers wait for their refunds due to processing error

A customer service number was provided (800-624-2088) and the statement, "We deeply regret the inconvenience this has caused these customers."  was the only consolation that TurboTax gave hundreds of angry filers on Facebook.

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Many people, anxious to get their returns, complained of poor customer service provided by TurboTax. From representatives who had no clue what was going on to reps who hung up on taxpayers is not making the situation easier.

So, I just spoke to a lady at turbotax who sounded like she was having the worst day of her life and I felt really bad for her. She said we will get a paper check to our homes 7-10 days after we were supposed to get our direct deposit.

As a consumer I dont want to hear a $9/hour employee read a scripted answer, we already know whats happen, ...what we want is our promised refund.

I will never in my life use turbotax again. I was a customer last year and unfortunately this year. The sad part is I am leaving because of you HORRIBLE customer service. Horrible.

So, where are the checks and how long will it take to get your return?

This Examiner called TurboTax customer service three times on Friday February 4 and received three different answers.

The first rep, contacted at 1:30pm ET, stated that customers needed to check with the IRS for information, and was extremely under-informed about the TurboTax screw up.

The second rep, contacted at 3pm ET, stated that the refunds due on 2/4/2011 were going to go out in the 'next few days' because 'TurboTax has a special arrangement with the IRS to send out checks right away.' When questioned as to how this can happen in light of the fact that the IRS cuts refund checks on Fridays, the rep responded again that it was a 'special arrangement' because the 'IRS knows about the error.'

The third rep was most knowledgeable and pleasant. She read an email that to this Examiner that she explained was the 'only information she had.' She informed me that "the IRS will mail checks one week after they were originally scheduled for direct deposit. If the deposit was expected on 2/4 the paper check will be mailed on 2/11 by the IRS. If a check is expected on 2/11, the refund check would be issued by the IRS on 2/18."

When asked if fees charged for filing would be deducted from the check, the representative stated that no fees would be deducted from any check because the checks are coming directly from the IRS.

What caused the TurboTax problem?

This Examiner then asked what caused the problem and the representative replied, "from what I understand, the information on the last page a select group of people was not transmitted to the IRS. The last page includes direct deposit information. That error can not be changed and paper checks will be issued by the IRS."

A customer service nightmare

TurboTax that would certainly do a better job of reassuring customers if all representatives had the same information.

How is TurboTax handling this on Facebook? Quietly. There has been very little posting by the company on the complaint-filled 'fan' page, other than a few responses giving the 800 number and a standard apology of, "...we deeply regret the inconvenience."

On Twitter, TurboTax is tweeting out vacation offers: "Beverly Hills Reunion Fans! Wanna win a trip to NYC & $500 spa gift card? We want to help you get there!" and prompting followers to fan their Facebook page: "LAST DAY it'll work! Pls. RT 'Like' our FB Page to reveal a TurboTax discount just for fans!"

It appears that the mistake that has delayed tax refunds for many is not all that concerning for TurboTax. Unless they are planning on sending all of the people who had their refunds delayed due to a "processing error" on vacation?

Previous article: TurboTax screws up: E-filers wait for their refunds due to processing error

, Social Media Examiner

Cheryl Phillips is a social media and news junkie. In true Gemini style, she enjoys learning and writing about all things trendy including social media, celebrity gossip, sports and current news topics.

Comments

  • Todd E Jones 1 year ago

    Irony, a TurboTax ad on the page of this article.

  • Profile picture of Cheryl Phillips
    Cheryl Phillips 1 year ago

    I know....they pop up to the side and below. Key word targeting at its best!!!!

  • Profile picture of Richard Webster
    Richard Webster 1 year ago

    hard to belive they're still running TV commercials for this product!

  • Anonymous 1 year ago

    This IS a nightmare. And now TT is saying nothing and passing me o to the IRS

  • Karen 1 year ago

    Will this same problem occur for Canadian users of TurboTax?

  • Devin 1 year ago

    Yes, that sucks a software company made a mistake that will delay people getting money that belongs to them by a couple weeks.

    However, a little perspective would be nice. The tax code is about 10,000 pages long, it wasn't finalized until the last part of December, and TT gets a product out that makes navigating those 10,000 pages relatively straightforward to most users by mid-January. Is anybody surprised there are some bugs?

    (On a side note: I've heard from people in the industry that Microsoft attempted to get into the tax software market long ago...but ultimately didn't because they couldn't meet the development cycles. That's MICROSOFT. They couldn't do it.)

    And I'm not sure what people are expecting TT to do at this point. TurboTax is not the IRS. They can't go into IRS systems and change returns that are being internally processed. If they managed to negotiate a "special arrangement" with the IRS to speed things up a little bit, more power to them. There are only two tax software companies that could possibly make an arrangement like that (the other is H&R Block).

    If you're really in a hurry to get your refund soon, then learn from this and next year adjust your withholding so you don't have to wait until the end of the year. The IRS has a tool to do this for you: http://www.irs.gov/individuals/article/0,,id=96196,00.html. Or just talk to a tax professional in the fall...a real professional, not the people at chain tax stores.

  • Profile picture of Cheryl Phillips
    Cheryl Phillips 1 year ago

    Devin--you didn't read the article. This has NOTHING to do with Tax Change laws. It was an error that TT made in transmitting dir deposit #s to the IRS---so now a paper check has to be issued. Again, your comment is informative but has nothing to do with what happened in this particular case with Turbo Tax.  This is NOT an error due to the tax laws---it's a  major screw up by TT--they did not transmit the last page of the tax returns of hundreds of filers at the end of Jan. So, these people will not get direct deposit and will wait weeks to see a paper check...maybe longer.

    Please limit comments to the incident described in the story...this way we don't go off about other topics here! Thanks!

  • Liz 1 year ago

    Wonders if anyone is thinking of suing tt over this. My husband lost his job right before Christmas and we really needed this money and now again we have to wait. And their only response was I won't be charge for the software. YA THINK!? If anyone knows of a law suit in the works please post it.

  • Chris 1 year ago

    I hope there is a lawsuit over this. It is totally unacceptable to those of us who were depending on this money to meet financial obligations. This is very unprofessional of Turbo Tax and Santa Barbara Bank.
    Please, someone, initiate a class action lawsuit!

  • D. 1 year ago

    I never got an email or any sort of notification that this was happening until I checked on my refund, which I was supposed to get today. Would have been nice to get a heads-up, since I promised the landlord a check today. Hooray, cruddy economy.

    Anyway, I like how TurboTax is trying to make themselves look magnanimous by saying they won't charge any fees. Ya think? The check is coming directly from the IRS and they won't be able to get their grubby hands on it. They're never getting their hands on my information ever again, either.

    Next year I'll just file paper returns, and hopefully have my savings built back up to where I'm not having to rely on a tax refund. Lucky me - this is the first year it's ever been crucial that I get the money on time.

  • Tina 1 year ago

    I'm sure most people were relying on their checks with the way the economy is today. I am an unemployed single mom of twin boys and I was def looking forward to that check to pay some bills and get my boys into daycare so I can start working. But I guess I have to wait thanks to TT. This was my first year filing with them and I will never ever recommend them or file with them again.

  • Colette 1 year ago

    I also would like to know about a lawsuit. I too just found out this morning I wasn't getting my return. I filed on Januar 24th and have been waiting. This has devastated many lives. My children and I are going to half to stay in a hotel till the checks come. And I have lost the house that I was going to rent. I beleive that they should be responsible for more than there fees. I will never use TT again. I am still in shock by all of this and appreciate this site. I had no idea there was a problem or I could of made other arrangments.

  • mike 1 year ago

    I also recieved no notice that my return was being delayed until i checked to see why i have not recieved it yet. i've been unemployed since i returned from a deployment in iraq last august. I had made a car payment that i can not retract to come out monday, if i had a heads up of a problem i would of never scheduled that payment i can not cover. This has really hurt me and my family i have three boys 5 and under and they have autism.I would of loved to have atleast gotten a heads up.

  • jeff 1 year ago

    i was affected too but my check is supposed to be mailed out on the 11th which is today so people please keep everyone posted on when ur check come and when u filed thanks

  • karen 1 year ago

    I'm sitting at the library typing because my electricity got cut off because of this mess! Thank you turbo tax, my pipes froze because I have no heat.

  • Hollie 1 year ago

    I filed and got accepted Feb. 9th, with the expected direct deposit date being the 18th, then the 22nd, now it's March 1st. I'm not even going to be home and I signed up for their prepaid debit card to keep the finances separate so if I get a paper check I'll have to either have it forwarded, costing me another three days (because I'll be three postal days away), or drive back to pick it up even though I have a job for a month and don't know if I can get the time off. I'm beyond frustrated and never heard a thing from Turbotax, just checked my expected return date on the irs website and did a little research myself.

  • Anonymous 1 year ago

    The sad thing is my return and refund where not a part of this issue as far as I know and I am getting a run around from TurboTax and the IRS due to issues with the repayment of the First Time Home Buyers Credit. It is a case of the IRS saying TurboTax used the wrong form and TurboTax saying the IRS is going through EVERY 1st Time Home Buyer payback return by hand with all tax preparers filings...don't believe TurboTax since others that used other companies have not had this issue. Should get something back someday!

  • Lizzie 1 year ago

    Hey, I'm having the same problem! I filed with turbo tax, all looked good, it was accepted by IRS, looked like I was gonna get it by today or by the 8th but when I checked the IRS website this past Wednesday, it showed processing delays. I spoke to someone then and Today and they say its my first time home buyer credit REPAYMENT that is delaying it. UGH!!! They mentioned an issue with the data being transmitted... Thanks TT! Although, I"ve used them for the last two years, I won't use them in 2012.

  • unwanted headach 4 months ago

    for 3 years i have used turbotax to file my refunds this year will be my last i received a cp200 saying there were discrepancies, on my copies i have every thing listed correctly, on the IRS copies they are missing my 401k info now i owe money. IRS explained to me it was a transmitting error some files/entries didn't transmit correctly and this is a frequent issue with turbo tax. sooooo angry

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