Tax customers waiting on advances

PORTSMOUTH, Va. (WAVY) - Several people called 10 on Your Side with tax money troubles. Some customers of Liberty Tax Service say they signed up to get an advance on their tax return, but the checks they received either can't be cashed or have bounced.

WAVY.com found the problem was with the new Liberty Tax Service 'Instant Cash Advance' program. The company has used this program for three years, but it is new to the Hampton Roads area. One customer says waiting on his advance to come has put him and his family in a financial bind.

With their dancing Statue of Liberty and bright flags, Michael Daniel always banks on getting his taxes prepared by Liberty Tax Service. This year he decided to try Liberty Taxes new 'Instant Cash Advance' program, but he hasn't gotten that advance as fast as he thought.

"It's like $3,000 that is just floating around somewhere. It's somewhere, but I don't know where it is at. It is frustrating,  because I've earned that money through the year," Daniel said. "I need that money for my family and I don't know where it is at."

The 'Instant Cash Advance' program allows customers to get an advance on their tax return. Daniel says when he was told to pick up his advance check, the Liberty Tax manager told him they could not issue him one.

"It's not a good feeling when you need money to provide for your family and live," Daniel said.

WAVY.com called the corporate office to get some answers. Liberty Tax Service Chief Marketing Officer Martha O'Gorman responded saying company has not had widespread issues distributing checks. She explained that one of three things could be delaying these tax advances.

"It may be that either the customer had a bad check cashing experience at a check cashing place or a retailer like Wal-Mart meaning that the check that they wrote wasn't accepted," Daniel said.

Or in error customers may have called the verification code on the back of the tax advance check essentially cashing it.

"There is a number that you can call to verify that the check is good," O'Gorman said. "Once that check is verified with the bank the bank reads that as the check being cashed so the customer will have to have another check reprinted."

And, lastly O'Gorman says some customers might not get their tax advance if they owe money.

"They might not get a check if they owe back taxes, or if they have student loan debts, because all of those things are verified when we do the tax  returns," O'Gorman said.

O'Gorman couldn't comment on why Daniel has not received his check. If you are having an issue with getting or cashing your check advance at Liberty Tax Service call their support number at 866-829-3278.

O'Gorman says it's important for customers to know all of their tax refund options when going to a tax preparation company . She also advises customers to consider having their refund printed at the tax preparation office or getting direct deposit.