Your IRS refunds are going to be delayed by an extra week this year. The culprits are the fraudulent tax returns and the modernized E-File system initiated by the IRS in 2009
Fraudulent Tax Return filing has been on the rise for the last couple of years. There has been such an increase that the IRS had to implement a series of robust fraud filters to detect these refund returns. The only problem is that the filters may have upheld a portion of the legitimately filled refund returns as well. Fraudulent filed tax returns and Tax Scams have become so pervasive that on February 16, the IRS posted a news article “IRS releases the Dirty Dozen Tax Scams for 2012″.
On the top of the list was Identity Theft. The IRS believes that over $1.4 Billion fell into the wrong hands in 2011. Identity theft is very complex and difficult to track down. For this reason, the IRS Identity Protection Specialized Unit has been setup.
In 2009 the IRS started to implement Modernized e-File (MeF) in three phases. MeF is an Internet-based real time transaction based system that allows for faster turnaround times of tax returns. MeF will replace current legacy e-file system that transmitted tax returns in several batches per day, rather in real time. At the start of 2012 will conclude the last phase of MeF rollover. Unfortunately, the IRS has experienced a few glitches in the new software and some sporadic system failures to the e-filling system.
As a result of the combination of fraudulently submitted tax returns and the rollover to the Modernized e-File system your Tax Refund could be delayed for 2012. Currently the IRS projects a refund to be deposited in your bank account within 10-21 days.
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