Some taxpayers who filed their federal tax returns early this year will have to wait a week longer than initially projected to get their refunds.
Early filers may have to wait longer for their tax refund-From USA Today
Some taxpayers who filed their federal tax returns early this year will have to wait a week longer than initially projected to get their refunds.
The delay was caused by new safeguards installed in IRS computer systems to prevent refund fraud, IRS spokesman Michelle Eldridge says. The problem is limited to taxpayers whose returns were filed before Jan. 26. Taxpayers whose returns were accepted on or after that date will not be affected, Eldridge says.
For many early filers, even a one-week hold-up could present a serious hardship, says Andy Stadler , an enrolled agent in Terre Haute, Ind. He received a call on Friday from a client who was counting on her refund to pay her electric bill, and feared her power would be cut off before she got the money.
"The people that come in early tend to be people who really need their tax refunds desperately," he says. "Even a week is a huge deal."
The delay has also created headaches for tax preparers because they've been forced to explain to clients that their refunds may be delayed.
TurboTax is notifying its customers of the potential delays through e-mail and has posted a notice on its Facebook page, says spokeswoman Julie Miller. H&R Block has also posted notices about the delay, noting that it affected all types of returns, regardless of how they were filed or who prepared them.
Even with the delay, taxpayers will still receive their refunds "in line with historic refund delivery times," Eldridge says. Taxpayers who e-file their tax returns and arrange for direct deposit typically receive their refunds within 10 to 21 days.
The IRS provides a "Where's My Refund" tool that provides an update on the status of taxpayers' refunds, but the IRS notes that the dates are estimates and subject to revision. For that reason, taxpayers shouldn't automatically assume they'll receive their refunds on the projected date, says Judy Strauss , an enrolled agent in Cobleskill, NY.
"This week some people were expecting the money to come through and the IRS had a computer problem," she says. "It can happen."
2) In the Markets today:
A disappointing round of economic data weighed on U.S. stocks Tuesday, but major indexes still posted the largest January gains in 15 years.
Stocks Fall at Close of Banner Month-From The Wall Street Journal
A disappointing round of economic data weighed on U.S. stocks Tuesday, but major indexes still posted the largest January gains in 15 years.
The Dow Jones Industrial Average declined 20.81 points, or 0.2%, to 12632.91, punctuating month's end with its first four-session losing streak since November.
Nonetheless, the Dow's 3.4% rise in January was the biggest since 1997, and the Dow's 415 point gain in January was the most on record.
The Standard & Poor's 500-stock index edged lower by 0.6 point, or 0.1% to 1312.41, and the Nasdaq Composite rose 1.9 points, or 0.1%, to 2813.84. The S&P 500's 4.4% rise was its biggest in January since 1997. As with the Dow, the S&P 500's 55-point gain in January was the biggest on record.
"Absent from trading patterns were days when screens were either all red or all green," said Teddy Weisberg, trader at Seaport Securities in New York. "January was one of the best months we've had in a long, long time."
The Dow climbed as much as 66 points early Tuesday before a reading on U.S. consumer confidence in January sent stocks lower. The abrupt swing into negative territory came after the Conference Board's index of consumer confidence retreated to 61.1 this month—well shy of the 68.0 reading expected by economists surveyed by Dow Jones Newswires. A reading that showed slower economic growth in the Chicago area last month didn't help.
The weaker-than-expected data offset early investor enthusiasm for a European Union pact to move 25 of 27 member governments closer to fiscal union and a permanent bailout fund for the 17-nation euro zone.
Investors once again digested quarterly earnings reports from major corporations. Exxon Mobil fell 2.1%, leading the Dow lower, after reporting its fourth-quarter earnings edged up 1.6%, in line with estimates. Still, margins declined in the fourth quarter because of rising oil prices and tepid fuel demand.
Pfizer fell 0.8% after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped expectations, but it lowered its 2012 earnings outlook slightly to reflect unfavorable changes in foreign-exchange rates.
In corporate news, RadioShack plunged 30% after the consumer-electronics retailer reported disappointing preliminary fourth-quarter earnings and a drop in gross margins, citing significant declines in its Sprint business. The company also said it decided to suspend share repurchases "for the near term."
U.S. Steel climbed 5.1% after the company reported a wider-than-expected fourth-quarter loss, but it said it expected a significant improvement in current-quarter results.
Mattel's fourth-quarter earnings rose 14% on improved margins, despite slower-than-expected sales growth, and the toy maker raised its dividend 35%. Shares of the largest U.S. toy maker by revenue jumped 5%.
Archer Daniels Midland fell 3.6% after the agribusiness company's fiscal second-quarter earnings plummeted 89% tied to a large write-down related to an Iowa facility. The company also experienced weakness in three of its major segments.
United Parcel Service fell 0.7% after the company reported better-than-expected fourth-quarter earnings and provided an upbeat 2012 outlook.
Avery Dennison's fourth-quarter earnings fell 81% from a year-earlier period that included a tax benefit as the maker of labels and tags also reported sales declines at its retail branding and specialty businesses. Shares fell 5.8% and were among the worst performers on the S&P 500.
3) Top financial story of the day:
The beleaguered housing market continued to struggle as U.S. home prices posted declines in November.
Home prices drop more than expected in November: S&P-From Reuters
Single-family home prices fell more than expected in November, highlighting the struggle for a sector yet to make a meaningful recovery, a closely watched survey showed on Tuesday.
The S&P/Case-Shiller composite index of home prices in 20 metropolitan areas declined 0.7 percent on a seasonally adjusted basis, a bigger drop than the 0.5 percent economists had expected.
The decrease added on to the 0.7 percent decline seen in October.
"The consensus view was that the rate of decline in home prices was slowing, and in fact what we've seen at the end of the year is that the rate of decline in home prices is accelerating," said Christopher Low, chief economist at FTN Financial in New York.
On a seasonally adjusted basis, 17 out of 20 cities racked up monthly declines and average national home prices were around levels seen in mid-2003.
Prices in the 20 cities also steepened their year-over-year decline, falling 3.7 percent compared to a 3.4 percent decline in October.
"Despite continued low interest rates and better real GDP growth in the fourth quarter, home prices continue to fall," David Blitzer, chairman of the index committee at Standard & Poor's, said in a statement.
"The trend is down and there are few, if any, signs in the numbers that a turning point is close at hand."
There was little reaction in financial markets immediately following the data as investor attention turned to Europe and hopes that a Greek bond deal will get done this week.
Recent data has lead to optimism the housing sector is in the early stages of the healing process, with some economists looking for prices to find a bottom this year. Still, the recovery is expected to be a lengthy one as the market remains hampered by an excess amount of homes for sale in the midst of weak demand.
4) Quote of the Day from Dave Ramsey.com:
Instead of worrying about what people say of you, why not spend time trying to accomplish something they will admire. — Dale Carnegie
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