If you filed your taxes with Intuit’s TurboTax this year and you are expecting a refund, you might not get it as quickly as you thought and that is not due to changes in tax laws. On February 3, 2011 a firestorm started brewing on the TurboTax message boards on February 3, 2011 as well as on their Facebook fan page.
Updated information: TurboTax processing error rage continues: Hundreds of refunds held up
There is confusion as to why hundreds, maybe thousands, of people who signed up to get their refunds via direct deposit are now getting their refund by paper check weeks later than the date given to them by TurboTax.
On February 3, the folks at TurboTax emailed taxpayers who are in the midst of this refund debacle. An apology of sorts due to what they call a “processing error.”
“The IRS has successfully processed your return. However, as a result of a TurboTax processing error, the IRS is unable to direct deposit your refund. Instead, you will receive your refund by check in the mail. The IRS will mail your check approximately one week after the day you were scheduled for direct deposit.”
However, the date of the expected refund had changed for many filers. Those who expected a refund on February 4 now found that the expected date of refund would be ‘by Feb 22.’ Some who expected a refund on Jan 28 would now get their paper check refund ‘by Feb 15.’
Both the message boards on the TurboTax website and their Facebook fan page have postings from people who are confused as to when their refund is coming and why it is coming via paper check.
Shortly after this Examiner posted a concern about the refund mayhem, an email arrived from Julie Miller, a spokesperson for TurboTax. In her email she wrote:
“We deeply regret the inconvenience this has caused these customers. We made a mistake and are doing everything we can to make it right. We are communicating directly with customers affected and of course, we’ve waived all TurboTax fees.”
Again, the same, scripted words that were in the email sent earlier in the day by Bob Meighan VP, TurboTax to filers who were now going to get a paper check. Late.
(Note: The fee for to have the money taken directly from the refund is $29.95, in addition to filing fees.)
In a follow-up email, Ms. Miller confirmed that the people involved in the refund mess had chosen to have their filing fees taken directly out of their refund. However, she stated it was “a subset of customers who selected that option so not all customers who did this are affected.”
Not all, but many. This Examiner asked for feedback from those who were part of that “subset of customers” and her email inbox exploded with hundreds of taxpayers who were waiting for refunds to pay their past due bills, pay for a trip so a child could see her father graduate from boot camp, or make their mortgage payment.
What is the mistake that TurboTax made?
No one is completely sure what the ‘processing error’ is that TurboTax made. Several people who posted on the message boards claimed to have called the IRS and were told that no direct deposit information was transmitted by TurboTax. Could it be that the last page of the tax returns for the affected filers was never sent over by TurboTax?
“IRS says they have no banking information for direct deposit, even though I am clearly looking at it on my 1040 form that was submitted when I E-filed. They have no way of changing any information either - so I just have to wait for the check in the mail … the IRS reports there is a new way of e-filing this year, and Turbo Tax did not submit that form with the e-file.”
Still others claim that their refund date has changed two or more times and at this point, they aren’t sure why. Their calls to TurboTax customer service have involved long wait times, as much as two hours, and no clear answers.
“I have been on the phone for the past 2 hours with Turbotax, Santa Barbara Bank and TRYING to contact a LIVE person at the IRS which is impossible!”
Logging into the Santa Barbara Bank website, the company that takes the ‘processing fee,’ suddenly served up zero information on Thursday night for many who were desperate to learn something about their money. Those who could log in earlier in the day were now given a message that there was an “error” and no refund information was available.
Bad press for TurboTax? Perhaps. But the bottom line here is there’s a whole lot of dancing around going on at Intuit’s TurboTax and being told it’s “only going to be an extra week” to get that paper check is not reassuring at all. An extra week is a long time for many.
“My refund was expected Jan, 28, 2011 and was confirmed by TurboTax. Now I check the status and its showing as my check will be mailed TOMORROW!!!! Santa Barbara is blaming Turbo Tax, Turbo tax is blaming IRS. the IRS is blaming Turbo Tax!!”
Especially when a paper check cannot be immediately traced by the IRS if it doesn’t show up on time. And primarily because many are counting on this refund to patch up some financial damage in their lives. Or perhaps to buy a car that will get them to the job they finally landed after months of unemployment.
A visit to the TurboTax Facebook page will give you a feel for the sheer panic, anger and confusion that is going on. Stop by the TurboTax website and read hundreds of messages from disgruntled customers who do not want a paper check weeks after their refund was supposed to be direct deposited.
They don’t want the same scripted answer from TurboTax or a lame apology.
The solution?
So far, the only solution is to wait. Stalk the postman and hope the paper checks makes their way to the mailboxes of many who are desperately waiting for their money.
All while Intuit patches things up by offering to waive the fees and the $30 processing fee that is, with all due respect, financial rape.
Surely there is a way for TurboTax to send this money to people who need their refunds from that big, fancy Bank of Santa Barbara that was set to take the $30 processing fee? After all, TurboTax, you have everyone’s direct deposit information.
Click here to view the letter TurboTax emailed to hundreds of filers.
UPDATE: An angered customer has now created a Facebook page they named TurboTAX Sucks: http://www.facebook.com/pages/TurboTAX-Sucks
Comments
I will never use turbo tax ever.
I used it and am part of this problem now. Was to get my refund last Fri and now a paper check becuz of TT's mistake. Ticked.
Maybe you should have not used the service. Now you're in a mess. Why don't people use H&R Block anymore?
Yeah- well Turbo Tax is a lot cheaper. H and R Block Rapes you for their services... unacceptable!
OMG!!!!!!!!!!!!!!!!!!!!!!!!!!
I hope they get their act together!
We are all screwed by TT. I bet it's run by the TeaBaggers!!!
Teabaggers would treat ppl better than TT. No answers. A paper check? Shove it.
What the heck does the TEA party have to do with TurboTax
I have a 4 yr old daughter who won't get to see daddy graduate from boot camp thanks to Turboa*s, this is a mistake that everyone but FubarTax is paying for!
It isn't just the people who elected to have their fees deducted that are getting screwed. I used the free Turbotax option on 1/16 and my refund has been delayed until 2/22 - over a month later! Several people have had that happen.
I am possibly going to get evicted due to this horrible mistake! It does no good to call turbotax. They all have a script they are supposed to say to us.
My girlfriend was supposed to get her refund today, the money she was getting was being used for a charity banquet on monday and now she can't give that money for the raffle
the charity was for cancer
I use taxslayer.com never used turbo tax. i just use to make sure we did everything right on taxslayer. We did our taxes on the 21st of Jan and got our refund DD today. These people are playing with fire when the economy still isnt at the best.
Fire is right. your not kidding. i'm goingto lose my house beuase i promised a payment to my landord
I opted to have the refund deposited onto a TurboTax card, so their excuse is almost laughable.
I don't spend money needlessly. I am a single mother who just needs to pay her bills and I was counting on this money to catch up. I am now 4 days late on rent and hopefully me and my daughter still have a place to live by the time this check comes through.
I opted for the quicker process for a reason. In this economy, this is a blow for many people.
TurboTax has had a ridiculous response to THEIR issue. Throwing an "oops sorry" out doesn't help anyone. It's not "just a week". If I was supposed to have my money TODAY and now the IRS says the 22nd, then that would be 18 days. One of TurboTax's biggest advertising points is their speed and accuracy.
Epic FAIL.
The IRS just told me my ddep info was not transmitted by TT. BIG SCREW UP and many people are not in a position to WAIT because they screwed up.
TURBO TAX: Where is my money???? Refund due on 1/28 and now it says 2/22 due to PROCESSING ERRORS?????
My direct deposit was scheduled to arrive 2/4/2011, but at 6:17 PM today 2/3/2011 I recieve and email explaining that due to a Tubro Tax error on my bank routing number transmitted incorrectly to the IRS and my refund will be mailed to me instead. Not only am I not getting my refund direct deposited today; I will have to wait till around 2/15/2011. Now I am about to be homeless. I had, based on the Turbo Tax promise, signed the papperwork to move into a new home 2/4/2011 and given notice at my current home of our intent to vacate. Now I am at my wits end as to what me and my duaghter will do now to have a roof over our heads. I called Turbo Tax and was told I would not be charged any fees due to the error (of course how can you charge for a failed service?), but in my current situation how does this make things right? I efiled my return on1/20/2011; why am I being informed of this error 14 days later? Maybe with a little notice I would not have spent my paycheck and could have used that to make a good faith payment on the new home and could have bought a little extra food to last till the 15th, instead of paying other bills.
I am so sorry and I am in a similar situation. I will pray for you and your daughter.
There is nothing they can do to help so I don't know why there is an 800#. The filing fees are not the issue. people want their money.
I am sorry that you were screwed by TT I was as well and my rent is due and I don't know what to do. I have used TT since 2005 and have never had problems until now. I am disappointed because I filed Jan 22 and they send a notice on Feb 3rd. I thought TT would have more respect for thier customers than this. I probably won't use them next year!!
I am in the same situation, we put a deposit down on a house, which I am buying for my (soon to be) fiancee and I. Not like a proposal, home inspection, or acquiring the most important investment in a person's life is a big deal or anything right? Their excuse is pretty laughable indeed, .nd to the people saying "you shouldn't plan on money you don't have" I can see that argument. But when you are strung along thinking everything is peachy for a week or more - you can't blame some one for expecting a company to handle sensitive tax information with a little bit of responsibility.
In the same situation. Was supposed to move tomorrow and just found out this morning that they are sending it next Friday. They alread rented the place I am in now so we have no were to go and have lost the new place that we were going to rent. Its gonna be a long couple weeks in a hotel room with four kids. I am still in shock. It would of been real nice to know before hand I too files three weeks ago, I think the should be held responsible, more than there fees.
Especiually loved taht last paragrapgh lol! Add to that the fact that IIntuit has a $15B market cap! They had better pay up to this nonsense! I dont know why we can't file a civil suit against them!!! They say they are waiving fees: well thing is my refund will now come via regular mail: so in all honesty, you don't have to charge me a procesing fees!! n other words all they've "apparently" waived in what? $14.00-30.00?!?!?
A friend of mine who did their return with me here on TT on the same day I did got thier refund today on time. The only diifence between thier refund and mine is the direct deposit information. My refund was to be DDed to my personal bank and my friend, who doesnt have a bank accoun,t opted for the TT refund card. I am beginning to believe that the proccesing error has nothing to do with last minute irs changes or anything like that, but has to do with the way fees are charged. I believe that TT found they made a mistake and would not be able to collect their DD fees and stuff from those, with personal banking, who elected to have the fee taken out of their returns and in trying to not have to owe all kinds of fee to their banking partner did something to mess things up. I know that some filers paid their fees upfront, but I feel that in trying to avoid the first error they compounded the error for everyone. I mean think about it if this was a glitch in how the routing numbers were sent or a change in the irs DD form at the last minute ect.. or anyone of the other TT excuses I have heard then why did people with the TT refund card get thier refund, but the rest didnt.
I really do smell a law suit coming on here when all is said and done. Any legal reps out there?
I opted for the TT card and have not received mine.
I opted for the TT card, and received e-mail confirmation that my refunds were deposited on time, but they never sent the card. Seems like a damned if we do, and damned if we don't situation.
totally disappointed and dont think ill recommend turbo tax! Or use it again!
I don't get it-- I filed my return with Liberty Tax Service a week ago, it was approved, I elected to pay slightly more and e-file to get my refund more quickly (which according to the "schedule" they gave me would be between Feb 4th & 11th). That would be...today!
Today I went in to get the rest of my paperwork (forms I left with them, etc.) and they "regretted to inform me" that the IRS is delaying refunds and the earliest I would receive it would be Feb. 22nd. They said it is entirely the IRS's fault/doing.
Who is telling me the truth? Does this mean that Liberty Tax Service is using Turbo Tax????
And charging me up the "you know what" for it?????
I am trying to find out if there's a connection between Liberty and TT. I do know that tax laws have delayed many returns but this issue with TT is a whole different problem.
They really should figure out a way to send us our money. Most of the people effected by this seem to be the people who need it the most. Thankfully I am not going to get evicted, or lose my house, but my car need some repairs, and it would have been nice to not have to struggle for the next 2 weeks. My husband called TT and asked to speak to a supervisor. They said someone would call within the hour. Two hours later, no call.
The fact that they waive the fees is pretty much an insult. How would they get their fees now anyway, send us a bill? Yeah right.
i filed my with turbo tax on jan 21st and was due my federal refund today and it was direct deposited in to my account this morning. and i had my state tax refund deposited last saturday. i am sorry to hear every one else is having issues with TT. i hope they get this straightened out for you guys soon.
Great news for you! It's likely you did not have your fees taken out from the return--this is what caused the problem.
I'm one of those dealing with TT's screw up. I've been checking the IRS Where's My Refund app. Until this afternoon it was rescheduled for a week after the direct deposit was to have occurred. Now, the IRS can't locate my return or give me any info on it. Uh.....what now?
Sigh
You folks have not helped us at all. I can not reach the web sites
to voice my anger on this matter. The IRS must have shut down
some sites. Will someone did.. This is Crazy. I filed Feb 1st and
had money taken by intuit for processing..No one can find my return with Turbo Tax...Someone needs to call the TV networks on this one and let the newspeople know what is going on.
I have been using TT for years, but I'm done with them. I probably should've given up on them a few years ago, but at least up 'til this year, they hadn't screwed up getting my money to me. Oh well... Live and learn...
Seriously? Financial rape? That's a little harsh! Unfortunately it looks like TT made an error with a group of customers who wanted to pay for their direct deposit out of their refund. It seems like this issue is being confused with the IRS issue of not being able to process returns with certain deductiions until some time in February. I'm not making any excuse for TT--I can appreciate people's frustration.
Here's a suggestion for next year--instead of letting the government be your savings account you increase the number of withholdings so you get more back with each pay check yet a smaller refund at the end of the year. Take some financial responsibility!
Here's the withholding calculator that can help you estimate changes you need to makee on your W-4.
http://www.irs.gov/individuals/article/0,,id=96196,00.html
Get a life, you Moron and stop grouping people into the same category as if everyone is the same, as if one size fits all.
All in all good advice (and what im going to do going forward), although the "Take some financial responsibility!" scolding is uncalled for and turns what could be good advice into something that puts peoples defenses up
The IRS announced weeks ago that returns with itemized deductions (Schedule A) would not be accepted until the evening of February 14. Anyone who didn't get that information may have been misled.
As for the use of Turbo Tax, a quote from an IRS District Manager is great: "Turbo Tax was the best gift we ever received."
The Turbo Tax issue is separate from what you are talking about. Turbo Tax already admitted to screwing up the direct deposit when submitting to the IRS.
This is REALLY bad and my fees being away does nothing to help. This puts me at the risk of foreclosure. And now, because a paper check will be mailed instead of direct deposit, with both mine and my husband's name, I am not able to get my money until who knows when as my husband has entered a long term 'facility' and I am not able to cash this check for over 6k without him present. I have a 3 year old... and no taxes, no bills able to get paid. No money for anything at this point. Big mess up Turbo Tax.
Does anyone know what filing dates this has affected? I'm scheduled for direct deposit on 2/11, and filed on 1/27/11.
They took down all of our comments on the TurboTax Facebook page and changed the display setting to only show their posts. A-holes!
I WAS supposed to get a refund tommorrow...now it is showing processing delays....so are they still screwing up? Im not affected by IRS delay.
I feel very bad for people this happened to, and I understand a lot of people, myself included, are living pay check to pay check in this economy. TurboTax screwed up, or the bank doing the refund transfers screwed up, or the IRS screwed up or some combination of the three... but this should serve as a reminder to everyone in all situations: never count on or promise money to anyone that isn't *in your hand* Sh*t happens that we don't forsee. You can't blame TurboTax or anyone else (except maybe the unemployment rate) for being so broke that you're hanging all your hopes on a pile of money at the end of the year. If you can't wait an extra week or two for that money - honestly we've got bigger problems!
Same thing happened to me...and THREE OF MY FRIENDS. I alerted the local media, and was interviewed. This disproportionately affects people with lower socioeconomic status, and THE PUBLIC DESERVES TO KNOW. Hopefully the local news will run the story!
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