Refund Delays 8863s Ack's on 15 Feb

[BP.]

Today is day 21 since the 14 Feb e-files were ack'd on 15 Feb, and no 8863 returns transmitted then have refunds or refund info posted yet. WMR message says still processing. Have had 8863's pre and post that date that were funded.

It now seems apparent that batch, and with multiple software vendors, is stuck somewhere. Have read reports of some taxpayers getting letters from IRS about it, but I haven't heard about any letters from my clients yet. In fact, no one is bugging me at all, but I am trying to monitor things and see what is going on.

Anybody have info?

[Gretel]

I kept checking on two tax returns that did not get refunds. Finally my software company (ProSeries) posted that they did not do the right thing with the EIC for taxpayers with no children and have corrected the error. I did not know what to do since this was one of the tax returns were I was waiting for the refund. Called IRS and was advised they processed these faulty tax returns after ProSeries had figured out their problem and that in fact my taxpayer's refund had been send two days ago. Had her check on the other taxpayer, refund was send two week ago. HOWEVER, status on IRS website still showed as being processed and no refund issued. She told me IRS is having problems with that. Dah, that was obvious.

While checking the refund indicator I noticed that some weeks ago the appearance of the window on the IRS page had changes from showing a progress bar to just the (wrong) message that the tax return is still being processed.

[DexEA]

From IRS E-news:

E-filed Tax Returns with Incomplete Forms 8863, Education Credits, Experiencing Delays
________________________________________
The IRS revised Form 8863, Education Credits, for Tax Year 2012 to help taxpayers and tax preparers understand the qualifications for the American Opportunity Tax Credit.
Checkboxes for lines 23-26 were added to confirm basic qualifications for taxpayers claiming this credit. If these lines are left blank, there will be a delay in the processing of the taxpayer’s return.
To avoid delays, ensure your clients complete Form 8863 correctly.


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Also concerning the EIC - it seems not just Proseries, but the preparer (I included) is at fault too. There are 2 questions on the Form 8867 concerning #22 & #23 that were not answered and caused the delay. Part Iv the due diligence requirements #22) If any qualifying child was not the tp's son or daughter, did you ask why parents were not claiming child? and #23) If the answer to question 12a is "Yes", did you explain the tiebreaker rules?

If taxpayer had no children I did not answer the questions - figured it was obvious the questions were nonapplicable. On several returns when the answer to #22 was NOT "yes" I skipped #23. These few have caused such a headache this year that I am considering doing NO EIC in the future.

I blame the IRS - system could have been set to reject if unanswered, Proseries - should have been set up to require an answer, and myself! 1/3 each!

[Gary]

IRS Nasty

We have called the IRS several times about the refunds and they are not at all helpful. In fact some of their employees that answer the phones are downright nasty.

[Gretel]

We have called the IRS several times about the refunds and they are not at all helpful. In fact some of their employees that answer the phones are downright nasty.

I guess it depends who you talk to. When I called the practitioner priority hotline the lady was very helpful and kind. When I had trouble with my pin number as third party designee (I got the numbers switched around and she told me so instead of just saying that I am wrong) she help find the place to get it right. I never had to use it so I was lost where to find that pin.