Link to Message from H&R Block CEO Bill Cobb:
Link to 'Club 8863' Facebook Page:
More than 600,000 will have to wait for their tax refunds due to a glitch in tax preparation software. One of the largest tax preparers in the country- H&R Block- offers an explanation on its Facebook page, while 'Club 8863' has earned thousands of 'likes' on the social media site.
The delay impacts those who filed Form 8863, a student tax credit, officially called the American Opportunity Tax Credit.
Unlike deductions which reduce taxable income, tax credits reduce taxes dollar for dollar, making the glitch costly for many who were expecting refunds on time.
The following message from CEO Bill Cobb, is posted on H & R Block's Facebook page:
"Let me set the record straight about the Form 8863 issue that has affected you, our valued clients: we made a mistake when the tax return was sent to the IRS. And you deserve an apology, an explanation, and to know what we’re doing about it.
Here’s what happened: this year’s tax season started later than any in history (January 30th), followed by a further delay in form 8863 not being accepted until February 14. Not good for everyone. When the IRS began accepting the form, we immediately sent your returns, with the intention of getting you your refund as quickly as possible. In our zeal to move so quickly, we missed a step. Specifically there was a disconnect in the transmission of form 8863 from our delivery system to the IRS E-file system, and this caused the delay many of you are experiencing. We fixed the transmission issue right away, but couldn’t undo it for those that had already been sent.
I want to make it clear that this was absolutely not the fault of your tax professional; your return was prepared accurately. This was an issue with the form transmission. This was our mistake — and I sincerely apologize. I want you to know that we hear the frustration of those impacted by this issue loud and clear, and we're working every avenue we can to get your refund to you as fast as possible.
We have been and remain in daily communication with the IRS, who are doing everything they can to speedily process all returns. We know that clients are beginning to see progress, funding dates are being communicated and refunds are definitely being funded. But we also recognize that in an already delayed season, it’s still not as fast as we want, and we’re not letting up until every client has his or her refund.
We are also committing to more frequent and regular updates with you as we have news to share, and we know we can do a better job here too.
Finally, I know an apology won't put your tax refund in your hands right away, and many of you still have questions. But right now, our singular focus is to get you that refund, and we have all hands on deck to help make this right.