Pages

Saturday, February 18, 2012

Updated Tax Refund Chart

Here is another funding chart update (from info provided by our banking partners).  If you notice there was another DIP in the funding of returns.  The first one was on returns filed between Jan 18th and Jan 22nd.   That one has pretty much been cleared up now.  The most recent one was caused by the MeF backlog at IRS, and occurred for returns filed between Feb 2nd and Feb 4th.  That one has NOT been cleared up yet.


Here is the chart showing that data.

--- Phil


Wednesday, February 15, 2012

IRS and Mississippi issue delay updates

The Internal Revenue Service and the Mississippi DOR have both issued updates on their processing delays.  I am copying their messages here:

First from Mississippi:
The MS DOR would like to make you aware of issues we are currently experiencing with processing state income tax returns.

Compared to prior years, DOR software is running very slowly on the State of Mississippi's servers.   Data coming into our tax system is being received and processed; but, at an extremely slower rate.  This has created a backlog of refunds to be issued.  Efforts to correct this problem have improved productivity somewhat, but have not alleviated the problem.  We are continuing to look for solutions and options.

Additionally, like many other states, we have incorporated additional edits when processing returns.  There has been a significant increase in our receipt of fraudulent returns,  so many refunds are delayed so that we can review and confirm the accuracy of the refund.

To date we have received more than 300,000 returns and have issued 120,000 refunds.  We apologize for any inconvenience that this has created for you.  We share your frustration with the delay.


And from the IRS:

Update: We are aware that some taxpayers who have filed electronically and received an acknowledgement from the IRS are concerned when they visit "Where's My Refund" and are told that we have no information regarding their return. This is a temporary situation, and we expect to resolve the matter in a few days. At that time, taxpayers will be able to get an expected refund date when they visit "Where's My Refund."

If a taxpayer received an acknowledgment message that their e-filed tax return has been received, they can be assured that the IRS has the tax return even though "Where's My Refund" does not reflect that. Taxpayers should not call the IRS unless specifically directed by "Where's My Refund," as there is no new information to give them.
We expect the vast majority of tax refunds to continue to be issued within the historical range of 10 to 21 days. The IRS is taking steps to update information so that Where's My Refund has current information. The IRS apologizes for any inconvenience and will provide updated information as soon as possible.

------------------------------------------------

Phil Drake

Saturday, February 11, 2012

IRS Efiling Needs Help

All Transmitters, including Drake, have been asked by the IRS to switch from MeF to Legacy.    They identified some issues on their end that have been delaying processing and refunds.  I am attaching their "Talking Points" and a copy of what they say will be a Quick Alert here:

Talking Points from IRS

Some taxpayers who filed electronically and received an acknowledgement from the IRS are concerned when they visit "Where’s My Refund" and are told that IRS has no information regarding their tax return. The IRS informed us on February 10 that this is a temporary situation and should be resolved in several days.  At that time, you will be able to get an expected refund date when you visit "Where's My Refund." 

This is an IRS issue and impacts returns regardless of who sends them in to the IRS. This is not a Drake issue.

If you have received an acknowledgement of your tax return from the IRS, then the IRS assures us they have received your return and are processing it.

Information on the status of your refund will be updated in "Where’s My Refund" once your return processes. This is a temporary situation, and we expect to resolve the matter in a few days.

IRS expects the vast majority of tax refunds to continue to be issued within the historical range of 10 to 21 days.


Text of IRS Quick Alert:

We asked for your help to fully test and run high volumes of tax returns through Modernized e-File (MeF) in 2012.

Thank you for your cooperation. We have successfully taken in more volume through MeF this year than all year in 2011. MeF is working properly, but we have discovered some issues with linkages to downstream processing systems that have primarily affected returns filed between February 6 and 10, 2012. Those issues, we believe, have been resolved.

However, as a temporary measure to ensure future processing runs smoothly, and to provide adequate time to complete processing of the affected returns, we have temporarily lifted all restrictions on the Legacy system. We encourage you to use Legacy until further notice.

Be assured all systems used for processing returns are operational and are accepting returns. CADE2 and MeF are operating correctly.

Again, we encourage you to use the Legacy e-file system until further notice.  We will continue to provide updates through Quick Alerts and other partner channels.  We appreciate your patience and understanding.

END OF MESSAGE FROM IRS

Friday, February 10, 2012

Bank Funding Chart

This chart is from data provided by our banking partners.  The horizontal axis is the DATE OF ACCEPTANCE of the return.  The vertical axis is the PERCENT FUNDED by date.

The funding cycle seems to be several days longer than we would have expected, but it is getting better.  We would not expect the funding for Feb 1st and later just yet.  And as you can see, we don't have funding for much after Feb 1st YET.
The funding from Jan 11th is not improving.  I think that may be due to a high level of fraud trapping (or fraud attempts) in the early days.

We don't know about funding for all IRS returns, but we suspect that it would not be too different than the data reported to us by our banking partners.

It is also apparent from this chart that the funding timetable shortened substantially after Jan 26th ( ---- the IRS told us that it would).




--- Phil Drake

Tax Preparers Arrested for Armed Robbery

Okay, you have to watch this video from KMOV TV in St. Louis.    The Tax Preparers were arrested and charged with attempted armed robbery. 

According to the report, they allegedly used a gun to force taxpayers to give them money out of their tax refund checks.

Here is the link:  http://www.kmov.com/news/just-posted/Tax-preparers-arrested-after-attempting-to-rob-woman-of-refund-check-139050579.html

I thought I had heard it all, but this takes the cake.

--- Phil Drake

Tuesday, February 7, 2012

No Mo Money

"Mo Money" (a tax preparation chain) has shut down all of its offices in Norfolk.  I don't know the specifics of this situation, but there is a news video at this link that you can watch:

http://www.wtkr.com/news/wtkr-mm-closed-norfolk-locations,0,5904365.story

Here is my advice to ALL Tax Preparers:
      1. Do good accurate work.
      2. Charge a fair price for your service.
      3. Do what you say you will do --  when you say you will do it.
      4. Don't promise what you cannot deliver.
      5. If you mess up, then 'fess up --- and fix it.

Failure to do any of these gives all Tax Preparers a bad name.

--- Phil Drake.

Saturday, February 4, 2012

Update on Tax Refunds

I thought I would give you an update on what IRS funding is looking like today.  This is as of Saturday morning Feb 4th.  And it will change on a daily basis.  But the data will help you see a picture of what is happening with refunds. 

This chart is based on funding data that we have received from our partner banks.



Ack Date
% Funded by EOD  2/2
% Funded by EOD 2/3
Change
Avg Days Til Funding Received
1/10/2020
89.26
89.26
0.00
18
1/11/2020
52.63
52.63
0.00
16
1/12/2020
88.46
88.46
0.00
17
1/13/2020
93.29
93.33
0.04
13
1/14/2020
96.23
96.23
0.00
12
1/16/2020
95.04
95.07
0.03
11
1/17/2020
94.25
94.33
0.08
12
1/18/2020
83.90
86.37
2.47
13
1/19/2020
54.47
71.34
16.87
13
1/20/2020
54.73
75.60
20.87
12
1/21/2020
41.67
66.46
24.79
12
1/22/2020
32.94
61.75
28.81
12
1/23/2020
73.05
79.14
6.09
8
1/24/2020
61.64
63.75
2.11
8
1/25/2020
55.21
57.88
2.67
8
1/26/2020
59.71
62.55
2.84
7
1/27/2020
30.19
51.66
21.47
7
1/28/2020
22.32
53.20
30.88
7
1/29/2020
21.47
48.19
26.72
6
1/30/2020
0.84
20.77
19.93
7
1/31/2020
0.00
3.61
3.61
7


I am encouraged by the one day change.  I believe that the IRS and FMS is beginning to get things working the way they had intended for them to work.

-- Phil Drake

Wednesday, February 1, 2012

Tax Refunds and State Acks Delayed

Wow.  This is a strange year for Electronic Filing of Tax Returns.

Increased fraud filters that the IRS put in place and other issues have caused lots of tax refunds to be delayed at least a week.  And then they are not arriving on the day of the week that we would typically expect them.  On top of that, we are seeing wild fluctuations from one day to the next in deposits that we would expect to see from Cade2 returns.

All of that has made it interesting for us and for our Tax Preparers out there using our software.

We should alert Drake customers to the fact that some states are having problems retrieving their state transmissions from the IRS.  This is causing problems for taxpayers because it delays the tax return getting to the state.  That delays the state refund as well.

If you call the state about a particular return, many times all they can tell you is that they have NOT received it (even if it is in transit).  Until they pick the file up from IRS, they do not even know about the return.

Some states appear to be working fine.  I won't mention any names, but a few states are well over 90% up to date with their Acknowledgements. 

However some states are only between 50% and 60% caught up.  And until they are able to solve their issues of retrieving the returns from the IRS, those numbers are not going to improve.

Here at Drake Software, we post the State Acknowledgements shortly after we get them. 

We do the same thing with the Bank Acknowledgements.  Some banks have told us that they will NOT post any IRS deposits today.  (I told you it was an odd year).

We will keep you posted.

--- Phil