Businesses and people frustrated by IRS tax delays

JONESBORO, AR (KAIT) - The nationwide delay of tax refunds is affecting taxpayers in Region 8.

Jodi Gallion said she paid $533.95 on January 20 to MoneyCo USA (formerly Mo' Money Taxes) to prepare and file her taxes, with a projected refund payout date of January 24, but Gallion said she has not received the refund from MoneyCo USA.

"It's been going on three weeks and every time I call their office, they have some excuse of why," she said.

Jonesboro office manager Corey Mills said Gallion is a customer of MoneyCo USA whose refund was delayed due to the glitches within the new computer system the IRS implemented to prevent refund fraud.

"Basically, I feel like there's something going wrong with this company. I can't pay any of my bills. I can't pay my rent. I can't pay my utilities. I can't buy groceries for my children. I have a lot of debt that I was really depending upon my money," Gallion said.

Corey Mills is the office manager of MoneyCo USA in Jonesboro. "What's going on now is pretty much a national issue. As you all may have seen on the news, the IRS did have a glitch in their systems, the first batch that went through, the people that did the early filing."

The IRS issued a notice on to tax practitioners that due to "fine-tuning of our systems... taxpayers will receive refunds approximately one week later than initial projections they may have received."

TurboTax also posted a delay notice on its web site.

Mills said 52 people filed with his office early, between January 13 and January 20. Six people on the list were not affected by the delay.

Gallion's check and several others were ready to be picked up when Region 8 News arrived at MoneyCo USA to interview Mills.

Check the status of your refund here.

Copyright 2012 KAIT. All rights reserved.

In a related story, Memphis, TN, based Mo' Money Taxes, the parent company of MoneyCo USA may soon be under investigation by the Department of Justice.

Congressman Steve Cohen of Memphis and Virginia congressman Bobby Scott are asking the Department of Justice to investigate Mo' Money Taxes due to a number of complaints dealing with bounced checks and delayed refund returns.

Copyright 2012 KAIT. All rights reserved.