chadlonetree Posted March 3, 2011 Report Share Posted March 3, 2011 I have had 2 clients, both efiling 5405 paying back 2008 credit (loan) that have called me stating that the IRS said there would be an additional 3 weeks processing. The return had to be sent to the "error resolution" department to complete processing. Anyone else had problems with returns with 5405 payback and delays in processing, or am I just lucky? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 4, 2011 Report Share Posted March 4, 2011 Just completed one this evening and have completed others prior and have not had this problem and hope that I don't have this problem. Thanks for the heads up Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 4, 2011 Report Share Posted March 4, 2011 This whole credit thing is an example of the need for Congress, the Administration and the public to stop using the tax law for their stimulus programs. Given the huge dollars involved in the credit,and its goal to spur home purchases (so people most benefit by getting the funds at time of purchase), it should have been done as a grant by HUD, for example. HUD could have verified eligibility during the loan approval or closing process and the funds could have been available at closing of the home purchase. The IRS did not need to be involved at all. Their time could be used for better purposes. Today, the audit rate for individual returns is just 1% (IRS 2009 Data Book, pg 22). Now in 2010, the IRS will be spending a lot of time auditing 1040s that claimed the homebuyer credit, even tho most were probably legitimate. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 4, 2011 Report Share Posted March 4, 2011 It makes no sense to audit them now, when they are paying them back. One of mine spent over a year proving that he qualified for the dang (loan) credit in the first place; now this year he had to start payback and he is one bitter client as the next year's credit was free. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 4, 2011 Report Share Posted March 4, 2011 I just checked on my client who should have gotten his refund today. The reply is that your refund has been delayed due to processing delays! Oh Wow! My phone will be ringing this afternoon as they have a seven month old baby and are counting on the refund. (Both working, no EIC) Quote Link to comment Share on other sites More sharing options...
frazzled Posted March 4, 2011 Report Share Posted March 4, 2011 I had one couple whose return could not be efiled because of the FTHB payback. Now, I am getting called by another lady, who had the payback, wondering "wheres the money?"! Last Saturday, when I checked the status of her refund, the irs was saying "there is a delay in processing and you should receive your refund by March 8th." She called last night (hey genius it's not the 8th yet!), and said "where's my money?"! The new IRS status said "there is a delay in processing your tax return. For more information, please continue. If you have questions or need additional information, please have the following on hand when you call:....... Please mention reference number 1481....." Just checked the status of another client with the payback and his is also delayed, with reference number 1301. Quote Link to comment Share on other sites More sharing options...
chadlonetree Posted March 4, 2011 Author Report Share Posted March 4, 2011 I called on them to inquire. IRS rep stated the reference code 1301 "really doesn't mean anything." Nice. I was told some of the returns with 5405 have to go to "error resolution" department to complete processing, and some don't and processing will not be delayed. Makes sense to me!!! ..... ??? Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 4, 2011 Report Share Posted March 4, 2011 Not to me! So, are they saying that some of the folks who are paying it back really shouldn't be. I highly doubt that anyone would be that stupid. (well, I may have to eat that statement at some future date.) Anyhow, I think that delaying refunds for taxpayers who are timely paying back their loan credit is ludicrous. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 4, 2011 Report Share Posted March 4, 2011 But apparently it is happening. I just checked on the one that I have already e-filed - accepted 2/17, and refund can be expected 3/15 according to website. Ridiculous! Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 4, 2011 Report Share Posted March 4, 2011 It's not just with that particular form. I have a client, a very basic 1040 no schedule a no nothing. His refund has also been held up do to processing delays. I think IRS was not ready for the flood of returns filed the week of Feb. 14th and rather than come out and publicly admit it, they prefer to let us hear the yells and screams. I also have two clients who filed the injured spouse claim, the one back on January 25th, and we still are waiting for them to process anything, a refund, letter, or anything. Anyone else file with the injured spouse claim, were the refund has come through? I'm in California a community property state so there should be no problem. I've filed them in the past for the same clients and 1/2 of the refund was sent. I don't remember it taking this long in the past. Deb! Quote Link to comment Share on other sites More sharing options...
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