That could mean tax refund delays and possibly other problems.
Tax refund delays are usually because there is a goof in the return.
We are unclear what portion of the sales lost due to tax refund delays will be recouped," CEO John Cato said in a statement.
However, this can be a dangerous strategy -- especially if your tax refund is delayed.
Keep in mind, some laws designed to help prevent fraudulent tax refunds also delay refunds on returns claiming the EITC or ACTC.
Last month, Wal-Mart's results suggested that American consumers were worried about the impact of higher payroll taxes and gasoline prices, along with slow tax refunds that delayed some spending.
Olson found that more than 1 million taxpayers failed to claim deductions they were entitled to for 2006, as a result of confusion caused by Congress' tardy action; others may have experienced financial hardship because their tax refunds were delayed.
Of course, the policy will not cover a missing or delayed tax refund, but it does provide reimbursement of up to $15,000 per occurrence and $30,000 per policy period for attorney and tax advisor fees, lost wages for missing work while dealing with the fraud, loan re-application fees, notary fees and costs for certified mail.
The company attributed some of the weakness to a delay in tax refund checks that have left people short of cash.
Thanks to the economic downturn, at least a half-dozen cash-poor states are now delaying their tax refund checks.
The company said US sales were affected by a raft of factors, including a delay in income tax refund cheques, cool weather, lower grocery price inflation than expected, and an increase in companies' payroll tax.
