Tax refunds delayed for some using online service

By Tara Morgan - bio | email

RICHMOND, VA (WWBT) - A warning before you file your taxes! An online tax return snafu has resulted in thousands of people now having to wait longer than expected for their much needed refunds.

The big refund problems involves the online tax preparer

Last Friday, about 2,500 people including a Henrico woman were supposed to receive their refunds by direct deposit but that didn't happen. A company spokesman says a software glitch sent their money to the wrong bank.

"We are going to get it back we just don't know when where or how," said Bridgette Whitaker.

Her daughter may have to wait three more weeks for her tax refund. About 2,500 people are in the same boat. They're not too happy with to say the least. Just look at the chatter on Twitter.

Company spokesman Craig Petz says because of a software coding error, the refunds filed last month were sent to the wrong bank.

"Once we got the acknowledgements back on that first set of returns, and we saw 100% of the returns in the batch all went to Republic Bank, it became obvious to us there was a problem," said Petz.

Petz says the money was kicked back to the IRS which will now send the refunds by mail. But Petz says the company is working with the IRS to deliver them by direct deposit as intended.

"I'll tell you what the real problem for us is the lack of concern," said Whitaker.

"We don't take this lightly at all. We know that especially the people who file early, they look forward to their tax refund; a lot of cases they have important transactions that are dependent on receiving it in a timely manner," said Petz.

Taxbrain has an "F" rating with the Better Business Bureau for not answering past complaints. Tom Gallagher with the BBB said it's always best to research a company first.

"Under the best of circumstances you want to be sure that information is secure," said Gallagher.

Petz says the company is working to resolve those complaints.

Petz says Taxbrain has contacted the impacted tax filers by email but has not yet heard back from the IRS about whether it will resend the money by direct deposit.

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