Tax glitch causes refund delays for thousands of H&R Block customers

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Wednesday, March 13, 2013 - 10:14pm

Thousands of furious taxpayers are waiting in line, demanding answers from H&R Block because they say the company made a mistake that is delaying their refunds.

One El Pasoan, Erica, who wants to remain anonymous, says she's a victim.

"I'm feeling very, very upset and frustrated because no answer, no money. We were looking to go on a trip with our money for spring break and of course, we're stuck in El Paso. No spring break trip for us," said Erica.

The IRS says the filing problem impacts some 600,000 customers who filed with H&R Block and other unnamed providers between February 14 and February 22, and has to do with Form 8863, the educational credits.

According to the IRS, victims of the computer error will need to be patient, saying:

"We are taking special steps to help taxpayers. This means the IRS may need as much as 4-6 weeks from this date to issue a refund to the taxpayer."

H&R Block released this statement:

"We are communicating directly with our impacted clients to assure them that we are doing everything we can to expedite their returns."

But Erica says that is not true. She says she paid H&R Block almost $400 to file her returns, and they've kept her in the dark.    

"They keep on giving the run-around. They don't answer, they say, 'We'll call you back and never do,'" she said.

H&R Block insists the filing mistake isn't their fault.

"When I called IRS, IRS said, "Well, we had nothing to do with that. H&R Block screwed up your filing. I will not go back to H&R Block. Most definitely not," said Erica.

So far, H&R Block has not said whether it plans to offer refunds or other compensation to their impacted customers.

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