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Friday, May 20, 2011

Red Tape: IRS snafu means refunds in limbo

Homeowners struggling to stave off foreclosure turned to a new federal tax "credit" in 2008 that amounted to a loan.  Now, an IRS glitch which interprets the unpaid balance as a tax debt is holding up tax refunds for perhaps thousands of taxpayers for months. The IRS keeps promising a fix, but the checks aren't in the mail.

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