IRS and Tax Preparation Software Companies Still Working to Send Second Stimulus Payment Out
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Some people still haven’t received their second stimulus payment due to direct deposits into inactive bank accounts.
“Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of January 4, 2021,” the IRS said in an initial statement on Dec. 29, 2020.
“The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions.”
Taxpayers who used tax preparation software to file their 2019 returns may have had their stimulus payments sent to inactive bank accounts instead of personal ones.
Since then, there have been many Americans who have yet to receive their second payment.
There are options for those who do not receive their payment before filing their 2020 tax return.
“People in this group who don’t receive an Economic Impact Payment can claim this when they file their 2020 taxes under the Recovery Rebate Credit,” the government agency said in the initial statement.
The second stimulus payment for most Americans can be up to $600 per adult and child. Married couples who file jointly may receive $1200. Many of the stimulus payments were sent out through direct deposit, followed by mailed checks and prepaid debit cards.
“Starting this week, approximately 8 million people will receive their 2nd Economic Impact Payments by prepaid debit card,” IRS news said in a tweet on Jan. 7.
“Because of the speed at which the law required the IRS to issue the second round of Economic Impact Payments, some payments may have been sent to an account that may be closed or, is or no longer active, or unfamiliar,” the government agency said in a statement on Jan. 5.
“By law, the financial institution must return the payment to the IRS.”
There have been complaints towards the IRS and tax preparation software companies about missing stimulus payments. Tax preparation software companies like TurboTax have addressed the issue since users who use it to file their tax returns may have had their stimulus payments sent to the wrong bank accounts.
“Unfortunately, because of an IRS error, millions of payments were sent to the wrong accounts, and some may not have received their stimulus payment,” the Executive Vice President of TurboTax said in an email to their users on Jan. 6, 2021. “We have been working tirelessly on a solution with the Treasury and the IRS.”
On Jan. 7, 2021, the Executive Vice President of TurboTax released an updated email to their users saying stimulus payments will begin to be deposited beginning Jan. 8.