Computer glitch delays some tax returns - WMC Action News 5 - Memphis, Tennessee

Computer glitch delays some tax returns

(WMC-TV) - One tax company came under fire Wednesday after some customers asked why their returns are still not back.

"Well, it's been kind of bad on me," said Greg Curtis.

Curtis is one of many frustrated customers left without their tax returns after a computer glitch at Mo' Money Tax Services' Third Street location.

"They tell me one thing and I tell people I owe I'm going to pay them on that date, and I can't do that," said Curtis.  "That's kind of rough."

Shandon Allen with Mo' Money Tax Services said a computer glitch is behind the delay.

"We had an initial problem with the IRS system crashing during the earlier part of the season," said Allen.  "Then I'm pretty sure you know about the fraud and things of that nature where they were only holding a majority of the returns that were supposed to be released at one point, and some of those refund dated were pulled back."

Allen said while the software issues have been resolved, Mo' Money Tax Services is not the only company being impacted.

The Internal Revenue Service recently notified tax preparers about a one-week delay for some refunds as it relates to the fine-tuning of IRS systems to adjust for new safeguards put in place to provide stronger protection against refund fraud.

According to IRS spokesman Michael Dobzinski, "This delay only affects some early filers.  Taxpayers whose returns were accepted by the IRS on or after January 26 will not experience the delay and their tax returns will be processed under normal guidelines and time frames."

"We had people calling into the IRS and we actually talked to them and were explaining the situation," said Allen.  "It's not a singular event with Mo' Money."

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