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Beware!: Computer Glitch Rejects Some IRS Returns |
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By Mary Dalrymple
The Associated Press
Thursday, January 22, 2004
Thousands of electronically filed tax returns were initially rejected in the past few days because of a computer glitch.
The problem began last Friday when the Internal Revenue Service officially opened the channels for electronic filing used by many professional tax preparers and individual taxpayers filing from their home computers. An error buried in 55 million lines of code, which had been updated to reflect new tax laws, caused the problem, which was corrected by Wednesday.
IRS spokesman Terry Lemons said no refunds will be delayed because of the early hiccup.
We have resolved that initial problem, Lemons said. We regret any inconvenience this may have caused.
The glitch did cause a delay for taxpayers who had filed early returns and applied for refund anticipation loans, the immediate payment of an anticipated refund in exchange for a fee. The lender offering the refund anticipation loan typically needs confirmation that the IRS accepted a taxpayer's return before approving the loan.
Only a small percentage of electronically filed returns were rejected, Lemons said. Taxpayers who file electronically get confirmation when their return is accepted and are notified when it's rejected. Electronically filed returns can also be rejected due to invalid Social Security numbers or math errors.
Sharon Cranford, director of public policy at the National Association of Enrolled Agents, said glitches early in the tax filing season aren't unusual.
Denise Sposato, spokeswoman for H&R Block, said they were quickly notified by the IRS and informed their customers, some of whom were not happy to hear about the delay.
Fast isn't fast enough for everybody, she said.
© 2004 The Associated Press
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