Millions of Americans experience delays in receiving their stimulus checks from the newly approved $ 900 billion COVID-19 relief package.
IRS and the Treasury Department began issuing the new round of $ 600 checks on December 29, saying eligible Americans would quickly receive them via direct deposit, check, or in some cases, a debit card. And while many have successfully received their financial impact payments, others have not seen a penny yet – due to an error in the Internal Revenue Service (IRS).
According to tax preparation Jackson Hewitt Company, millions of payments were either delayed or sent to the wrong accounts due to IRS errors. The company said the bug has affected some Jackson Hewitt customers as well as others who had set up temporary bank accounts when they filed their 2019 tax returns via TurboTax and H&R Block.
The IRS issued a statement on snafu on Tuesday, updating it on Thursday:
“Because of the speed with which the law required the IRS to issue the second round of financial impact payments, some payments may have been sent to an account that may be closed or, is or is no longer active, or unknown. By law the financial institution must return the payment to the IRS; they can not withhold and issue the payment to a person when the account is no longer active. “
H&R block said Tuesday that it “processed millions of stimulus payments to customers’ bank accounts” and that “all direct payments are on the way”, TurboTax also warned customers via email that they should start receiving their payments from January 8th. Some customers confirmed receipt Friday afternoon.
But others may need to submit their 2020 tax before receiving their stimulus payments.
IRS specified in its statement regarding the error that if eligible Americans do not receive the financial consequences, they must “submit their 2020 tax return electronically and claim Recovery Rebate Credit on their tax return to get their payment and any reimbursement as soon as possible.”
To check the status of your payment, the agency advises people to check “Get my payment”Tool on its website. If the tool says “Payment Status # 2 – Not Available”, you will not receive a payment and will have to claim it in your 2020 tax return.
Americans can start filing their 2020 tax later in the month and has until April 15 to do so.