Refunds delayed as IRS copes with new software

The distribution of many tax refunds by the Internal Revenue Service has been delayed this year due to problems with new software, the agency indicated in response to complaints.

Some early filers are upset, saying the IRS has been taking significantly longer than it said it would to process filings. According to Accounting Web, filers of early returns from the beginning of February did not see refunds for between 15 and 22 days, or in some cases longer. Last year, taxpayers who filed electronically typically received their refunds within two weeks, or even one.

The delays have happened regardless of the efforts and programs used by early filers and tax preparers, according to the news source. The IRS reports that the delay is due to software changes meant to help detect fraud.

The agency has stated that delays are being dealt with, and more recent filers should find that the problem is solved. Federal officials and employees have been working to update IRS software for some time, and intended to eliminate the old system in October. This plan was pushed back and some tax preparers have been instructed to file through the old system this season to avoid difficulties with the new one.

Day traders may wish to be prepared for processing to take longer than in previous years. On the other hand, Reuters reports that IRS spokesman Frank Keith has said the IRS has mostly caught up and is now working at a speed comparable to past efforts.