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Software glitch delays some tax returns

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Form 8863 is for student tax credits. The owner says the IRS sent out alerts about the glitch on Feb. 20 and March 8. Form 8863 is for student tax credits. The owner says the IRS sent out alerts about the glitch on Feb. 20 and March 8.
JACKSON, MS (Mississippi News Now) -

"Where's my refund?" has been the recent reaction from frustrated customers at American Tax Service on Raymond Road in Jackson. But the manager says the problem is nationwide.

"When we upload the data from our software to the IRS' software, they have missing data. I think it's line 25 and 26 on the 8863 [form]. It's clearly answered on our end. There's no way for it to process without it being answered. But there's definitely a software issue involved in there," said manager Casey Earnest.

Form 8863 is for student tax credits. The owner says the IRS sent out alerts about the glitch on Feb. 20 and March 8.

"That's when we realized that everybody was receiving a letter that had filed between Jan. 23 and Feb. 14," said owner Jeff Cox.

But not every client took the time to ask questions after receiving the letter.

"A lot of people come in pointing a finger saying 'what did y'all do to my taxes' and stuff like that. Which is understandable because we're the first person, public wise, between here and the IRS. We actually handle your tax return," said Earnest.

Clients have filled the parking lot recently with lines out the door.

"The complaints coming from our customers are because they had the form 8863 filed. That is the whole hold up with checks. But in this company when you don't produce checks, customers get angry," said Cox.

American Tax Service says they've filed for roughly 3, 400 people. Of those, they estimate between 1,500 and 2,500 refunds are delayed because of the software glitch.

"We're manually sending in over fax lines 25 and 26 so they can see it and help finish processing the tax returns," explained Earnest.

The company has not received an exact date for when the delayed refunds are expected.

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