The IRS is working "aggressively" to speed up the processing of tax returns that were submitted incorrectly by "a limited number of software company products."
The Internal Revenue Service said 10 percent of people who submitted their taxes with student tax credit form 8863 were affected by the error. The error required the IRS to review the returns additionally, which delayed the processing of returns in many cases beyond the normal 21 calendar days.
H&R Block said 600,000 filers were affected although not all them are H&R Block customers. Besides H&R Block, over the phone an IRS spokesperson could not think of another company whose clients experienced the issue.
"It's been real problematic, and I'm just blown away at how it's all been handled," said Rob Powell, a student getting his bachelor's degree in Community Services. "No apology and very little communication," said Powell who is frustrated with H&R Block for messing up his taxes. He said this is the second and last year he will file with H&R Block.
The IRS said it is "taking special steps to help taxpayers" to have the returns processed in the next four to six weeks. The review process normally takes eight weeks to complete.
H&R Block has not said if it is considering refunding the filing fees charged to its clients who experienced the problem.
A group of people who filed their taxes through H&R Block that were negatively impacted by the computer glitches created an Facebook page called "Club 8863." That page has grown to more than 3,800 people.
Those affected by the problem can check "Where's My Refund?" to get an update on the status of their return. The IRS said it's computer system usually updates overnight and so people do not need to check more than once each day. The link is below.
The IRS began accepting taxes with the student tax credit forms starting on February 14. Those who submitted their taxes with the forms before that date were held until Feb. 14.
H&R Block noticed its back end computer submissions had an issue and corrected the problem on Feb. 22, so only those customers experienced the problem and delays.
In a statement the company said "It’s important to note that the tax returns were prepared accurately. The error occurred in e-file processing."