Never received IRS stimulus check? Maybe a territory glitch – Community News
Stimulus Check

Never received IRS stimulus check? Maybe a territory glitch

If you’re one of the untold numbers of Americans whose third stimulus check mysteriously never showed up, new details may provide clues as to why.

Some taxpayers may have been incorrectly identified as residents of U.S. territory and were incorrectly deemed ineligible to receive payments from the Internal Revenue Service (IRS), according to people affected by the matter and correspondence seen. by means of Fast company.

The misidentification was the result of an outage requiring a manual review, some taxpayers were told by IRS representatives. Others learned of the matter only after their representatives in Congress launched an investigation on their behalf.

After waiting months for an Economic Impact Payment that never arrived, John Mack of Tucson contacted Arizona’s Second District Representative Ann Kirkpatrick’s office. In a written response earlier this month, the IRS said it was “reviewing information” to determine whether some taxpayers had been misidentified as residents of the territory.

“It didn’t really say I was one of the people who had been misidentified, but I find that excuse interesting,” said Mack, who has been trying to solve the mystery of his unseen check since at least June. “So, guess I’ll wait until next year for recovery.”

Taxpayer Veronica Wadsworth said she learned about the matter after speaking with an IRS telephone representative. She was told that her account contained a piece of code that had to be manually deleted. “The rep told me it was indeed a glitch that put the code on my account and many other accounts,” Wadsworth says.

It is unclear how many taxpayers have been misidentified in this way. Hundreds of frustrated would-be recipients of the third stimulus check have been gathering in Facebook groups and other online forums for months to find out why their payments never arrived. Many had failed to contact the IRS and some sought help from their local representatives. In response to their concerns, the IRS previously denied that widespread disruptions had affected the distribution of stimulus payments.

Reached for comment by Fast company, an IRS spokesperson was unaware that taxpayers were being falsely identified as residents of the territory and said she would inquire further.

Residents of U.S. territories such as Puerto Rico, Guam and the U.S. Virgin Islands were generally eligible for the third stimulus check, but their payments were distributed by local tax authorities rather than the IRS. In an effort to avoid duplication of payments, the agency worked with U.S. territories to identify people who filed tax returns as residents of the territory, according to the letter to Kirkpatrick’s office.

In March, the US bailout plan approved up to $1,400 for individuals and $1,400 for each dependent. Most payments are made via direct deposit or paper checks.

Many eligible taxpayers who have never received one, especially those struggling financially, say the money would have made a huge difference. Some say they were told their account was misidentified only after countless hours of repeated attempts to reach the IRS by phone. if Fast company previously reported, IRS correspondence and telephone representatives had used language such as “programming error” to describe the problem. This is probably because they themselves were not yet aware of the problem of misidentification.

According to more recent correspondence, people who have been misidentified should receive their checks in the fall of 2021. Eligible taxpayers who do not receive one by the end of the year must claim the payment as a Recovery Rebate Credit on their 2021 tax returns.