IRS Reports Database Glitch with TeleFile System

April 3, 2001

The IRS today reported a computer database glitch that could cause some taxpayers using the agency's file-by-phone "TeleFile" system to have their refunds sent to the wrong address. Background Info

IRS Problem Alert Release on TeleFile Glitch

Affected are taxpayers who moved last year and have an apartment number as part of their address.

The IRS said it may have an incorrect address in its TeleFile database for these taxpayers. Due to a computer programming error, part of the apartment number was dropped when transferring the change of address to its TeleFile system.

The IRS said it is trying to fix the problem, but that it may not be resolved by the April 16 filing deadline.

As a result, the IRS cautioned affected taxpayers to use TeleFile only if they expect a refund and elect to have that refund deposited directly into their savings or checking account.

"Otherwise, your refund or balance due notice will be mailed to an incorrect address," the IRS said. "Undeliverable refunds can take up to 90 days to process and reissue."

In all, nearly 18 million taxpayers were sent TeleFile packages this year. The system allows eligible taxpayers to file a Form 1040-EZ return via touch-tone telephone. With TeleFile, all the necessary data for your return is punched in on your phone keypad during your call to the IRS computer. No paperwork needs to be mailed in.

http://www.taxplanet.com/taxnews/telefile040301/telefile040301.html

-- Martin Thompson (mthom1927@aol.com), April 05, 2001