CFOSnafu.com » IRS glitch doubles refund for lucky few

IRS glitch doubles refund for lucky few

May 22, 2008 by Shane Borer
Posted in: In this week's e-newsletter, Latest news & views, Tech failure

Thanks to a problem with the Service’s e-filing system, a number of taxpayers will be getting a much-appreciated boost to their income tax rebates.

The computer glitch affects taxpayers whose income was below the filing threshold, but e-filed to receive their economic stimulus check. To allow people to e-file their returns, IRS let these people enter $1 for their adjusted gross income.

But, instead of factoring in that dollar as gross income, the Service’s system recorded it as a $2 earned income credit for the e-filers.

And in a rare show of generosity, IRS isn’t asking for the money to be repaid.

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