A shocking error by the Internal Revenue Service (IRS) caused a 92-year-old woman to lose access to her $11,000 tax refund. Myrna Hoffman, who depends on this money to cover her medical treatment, was left in financial distress. Her daughter Debra discovered the problem when she tried to cash the check but was denied due to a simple typing error. This article explains what went wrong, the struggle to fix it, and how the situation was eventually resolved.
IRS Error Blocks $11K Tax Refund: What Went Wrong?
Myrna Hoffman, a retired boutique owner from the 1950s, received her tax refund from the U.S. Treasury last tax season. Her daughter, Debra, tried to cash the check as usual, but this time, something went terribly wrong.
The Mistake
The check only had her first name and a percent sign (%) instead of her full name, which made it impossible to cash. Banks require an exact match between the name on the check and the person’s legal name, which led to the rejection.
Lack of Response from the IRS
Debra quickly reached out to the IRS to report the mistake. After much effort, she managed to speak to someone who assured her that a corrected check would be issued within 30 days.
Months Passed with No Action
Despite these assurances, months went by without any resolution. During this waiting period, Myrna’s health worsened, and the family faced financial difficulties. Debra couldn’t believe such a serious mistake had occurred at the U.S. Treasury.
Media Helped Solve the Problem
When Debra’s patience wore thin, she decided to seek help from the media. She shared her story with ABC7 NY, and the results were immediate.
IRS Finally Took Action
After ABC7 NY contacted the IRS, the agency acted swiftly and reissued the check with the correct name. Debra was relieved and celebrated the long-awaited solution. She shared how stressful the entire experience had been but expressed her joy that her mother’s refund was finally accessible.
Thousands of IRS Workers Laid Off: Possible Cause of Errors
Debra’s case is not unique. Many other Americans may face similar errors because of recent staff reductions at the IRS.
Why Did IRS Layoffs Happen?
Thousands of IRS workers were laid off due to pressure from Elon Musk’s DOGE and its aggressive cost-cutting policies. These layoffs occurred at a critical time—right before tax season, which began on January 27, 2025. The deadline to file tax returns is April 15, 2025, but taxpayers can request an extension until October 15, 2025.
How to Extend Your IRS Tax Deadline
If you need more time to file your tax return, you can request an extension to avoid penalties.
Steps to Extend the Deadline
Fill Out Form 4868: This form is called the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
Submit Online or by Mail: You can file the form online using an IRS e-filing partner or mail it to the IRS.
Get Help from a Tax Professional: A professional can help you ensure the process is done correctly and on time.
What You Can Learn from This Case
If you or your family rely on tax refunds, double-check your information and stay alert to any errors.
- Verify the name and details on your check.
- Keep track of communication with the IRS.
- Don’t hesitate to involve the media if your case is being ignored.
Even though this situation was eventually resolved, it shows how important it is to be vigilant during tax season.
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