Taxpayers often ask EROs to help them when refunds
take longer than expected. The IRS may delay refunds for a number of
reasons, including errors in
Direct Deposit information (refunds then sent by check), financial
institution refusals of Direct Deposits (refunds then sent by check) or
delays in crediting the Direct Deposit to the taxpayer's
account, estimated tax
payments differ from amount reported on tax return (for example, fourth
quarter payments not yet on file when return data is transmitted),
bankruptcy, inappropriate claims for the Earned Income
Tax Credit, or
recertifications to claim the Earned Income Tax Credit.
The IRS sends a letter or notice explaining the
issue(s) and how to resolve the issue(s) to the taxpayer when it delays a
refund. The letter or notice contains the contact telephone number and
address for the taxpayer to use for further assistance.
If taxpayers'
refunds are lost or misapplied, taxpayers do not receive notices or letters
or there is no information on Where's My Refund or the
Refund Hotline (see Advising Taxpayers about Refund Inquiries above), EROs
should advise taxpayers to call the IRS taxpayer assistance number.
The IRS offsets as much of a refund as is needed to
pay overdue taxes owed by taxpayers and notifies them when this occurs. The
Financial Management Service (FMS) offsets taxpayers'
refunds through the Treasury Offset Program (TOP) to pay off past-due child
support, federal agency non-tax debts such as student loans and state income
tax obligations. Offsets to non-tax debts occur after the IRS has certified
the refunds to FMS for payment but before FMS makes the Direct Deposits or
issues the paper checks. Refund offsets reduce the amount of the expected
Direct Deposit or paper check but they do not delay the issuance of the
remaining refund (if any) after offset. If taxpayers owe non-tax debts they
may contact the agency they owe, prior to filing their returns, to determine
if the agency submitted their debts for refund offset. FMS sends taxpayers
offset notices if it applies any part of their refund to non-tax debts.
Taxpayers should contact the agencies identified in the FMS offset notice
when offsets occur if they dispute the non-tax debts or have questions about
the offsets. If taxpayers need further clarification, they may call the
Treasury Offset Program Call Center at (800) 304-3107. If a refund is in a
joint name but only one spouse owed the debt, the "injured spouse" should
file Form 8379, Injured Spouse Allocation.
To review an ERO has many
duties and responsibilities. The ERO must have either prepared the return or
collected it from a taxpayer. An ERO originates the electronic
submission by electronically sending the return to a Transmitter
that transmits the return to the IRS or directly transmitting the return to
the IRS. The ERO could also be working with a third party transmitter and be
providing a return to an Intermediate Service Provider for processing prior
to transmission to the IRS. An Electronic Return Originator (ERO) originates
the electronic submission of returns it either prepares or
collects from taxpayers who want to e-file their
returns. Furthermore, the ERO must always identify the paid preparer (if any) in
the appropriate field of the electronic record of returns it
originates.
A Provider, including an ERO, may choose to
originate returns that it has not prepared. The ERO may also disclose tax
return information to other Providers in connection with e-filing a tax
return. Additionally, the ERO may pass on return information to an
Intermediate Service Provider or a
