IRS Computer Glitch Affects Your Refund --------------------------------------------------------------------------------

The IRS may have made a mistake about how much of a tax refund you will receive. The service mailed out 114 million notices Monday to let people know how much money they should expect. Unfortunately, hundreds of thousands of those letters are incorrect.

The IRS says it is working to fix the problem and is now scrambling to mail out new, corrected letters. The IRS blames a computer glitch for the mix-up. 500-thousand letters were sent out this week, that miscalculated the size of the rebate.

New letters are on the way -- but there could still be some confusion in the meantime. IRS Agent Jane Pitts tells KARK News 4, "Technically, you could receive your check before you get the correction letter. So, we could have some disappointed people believing they're going to receive a higher advanced refund than they'll actually get."

Your refund will be five percent of last year's taxable income, or, a maximum of $300 if you're single, $500 as head of household, or $600 for married couples. If you get a letter stating you'll receive more than that -- the IRS says, it's wrong.

"The checks will be correct. The money will not go out unless it's been verified that it is correct. So if you receive a letter that states the amount is higher and you get a check that's less than the letter, hold on. You'll probably receive a second letter clarifying what the difference was."

If you do receive a letter that's incorrect -- don't call the IRS. They are already aware of the problem. And the bottom line is -- your check will be the right amount.

The first tax rebate checks will be mailed out this Friday. If you would like to know when you'll receive yours, go to the KARK.com home page, and click on features. You need your social security number, because the dates are categorized by the last two digits of that number.

http://www.kark.com/karktv/news/story_tmp.asp?cmd=view&Storyid=1515

-- Carl Jenkins (somewherepress@aol.com), July 25, 2001