Software SNAFU Delays "Several Million" Tax Refunds, IRS Says

Paul Lilly

Assuming you don't owe Uncle Sam a cent and are looking forward to getting a chunk of change back in the form of a tax refund, you may have found yourself window shopping for what you'll buy. A new PC, perhaps, or maybe a long overdue upgrade, such as a new videocard. If that's the case, hopefully you're holding out for Ivy Bridge (Intel) and/or Keplar (Nvidia), because there's a chance your tax refund could be delayed.

The U.S. Internal Revenue Service is experiencing problems with its new software for processing tax returns, leaving many taxpayers understandably miffed, Reuters reports. Software glitches have reared their ugly heads as the IRS prepares to transition to a new platform.

"There were probably several million taxpayers whose returns we took longer to process," IRS spokesman Frank Keith told Reuters .

The tax return system upgrade will run about $1.3 billion through 2024 and is supposed to modernize the whole e-file process. As it currently stands, the IRS estimates that those who file their taxes by April 15 will get direct-deposit refunds 7-13 days later, or up 17 days for mailed refunds.

In reality, some are taking a little bit longer. Reuters spoke with a tax preparer in Delhi, Louisiana who said that 85 percent of the 220 e-file returns she filed this year were subject to delayed refunds, most often 7-10 days past the anticipated refund date.

Image Credit:

Around the web