IRS: Form 8863 Delayed Refunds Expedited to Mid-April

IRS: Form 8863-Delayed Refunds Expedited to Mid-AprilThe Internal Revenue Service has updated the timetable for delayed refunds caused by transmission glitches with Form 8863 (education credits) from 4-6 weeks to 2-4 weeks, with most filers getting their refunds by mid-April.
Earlier this month, H&R Block said it experienced software-programming glitches for an estimated 600,000 clients, creating a PR crisis for the largest tax preparation firm and drawing an apology from its CEO. The Form 8863 fiasco has also generated class-action lawsuits by filers against the company seeking  — at the very least — refunds of tax filing fees.
There is yet another impact from the Form 8863 snafu on students, with many waiting on processing of tax returns to complete the Free Application for Federal Student Aid,  or FAFSA, as college deadlines loom.
“Over the last two weeks the IRS has worked diligently to process tax returns affected by a problem with a limited number of software company products involving some taxpayers filing Form 8863, Education Credits,” the IRS said in its newest statement. “The IRS previously estimated that it could take 4-6 weeks from March 12 to issue refunds to the impacted taxpayers. Due to the special steps the IRS took to help these taxpayers, the work is being completed more quickly than anticipated — in two to four weeks.
“Many affected taxpayers have already received their refunds and more are on their way. The IRS expects to issue nearly all of these refunds in early to mid-April .”
For those clients that also have to file a FAFSA application, H&R Block has arranged direct access to Student Financial Aid Services, a division of Rezolve, a private student financial aid advisory firm. “While Student Financial Aid Services is not affiliated with the Department of Education, they are a well-established and experienced student financial aid advisory firm,” an H&R Block statement said
Taxpayers affected by this issue can check “Where’s My Refund?” on IRS.gov to determine the status of their refund. The IRS reminds taxpayers that “Where’s My Refund?” is usually updated overnight, so taxpayers only need to check the tool once a day.
The U.S. Department of Education provides Guidance for Impacted Taxpayers to clarify how FAFSA applicants can still complete the FAFSA — even if the IRS has not finished processing an applicant’s tax return.  They also issued Guidance for Schools and encourage applicants to call the Department of Education’s toll-free number, 1-800-4FEDAID, with any questions.

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