Where's Your Refund? H&R Block Error Causes Delay

About 600,000 H&R Block customers, mainly students, are irate, because of  filing errors caused by the large tax preparation company. The error affects customers who filed Form 8863 for educational credits from Feb. 14 to Feb. 22. Because of these errors many students are worried that this can affect their applications for federal financial aid.

“The IRS is continuing to review the situation and working with affected software companies to assist in the processing of these tax returns,” IRS spokeswoman Michelle Eldridge said in a statement.

The error could cause an additional delay of up to 6 weeks, and has affected about 10% of all tax returns filing for the education credit. But H&R block customers aren’t the only ones feeling the sting of the errors.  This year I prepared my  brother’s taxes using another online company, and a few days after submitting it, he received a letter informing him of the delay because of the Form 8863 error.

The issue is due to the way the IRS processed “yes” and “no” questions on the form. Normally, the IRS accepted a blank field as “no”, but the changes actually require people to add the word “no”.

“The IRS is processing returns as we speak, and we’ve seen some clients already receive notification that their returns are being processed,” H&R Block spokesman Gene King said.

Irate customers have swarmed H&R Block’s Facebook page demanding refunds and declaring their hate of the company.

“Thank you for over 18 years of service, but this will be our last tax year together,” one angry customer wrote.

Maybe this delay will give people more time to contemplate splurging on that  new television or new car.

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