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The glitch that's delaying stimulus checks for millions

Why the IRS may not know your bank account number
White House commits to sending stimulus checks within 2 weeks
Posted at 10:38 AM, Apr 21, 2020
and last updated 2020-04-21 11:03:07-04

Originally posted by Levi Ismail, WTVF-TV

Millions of people could have to wait even longer for their stimulus checks, as banks send back money the IRS mistakenly placed into incorrect bank accounts, which were originally meant for refund advances.

Tax prep specialists say they’re stuck having to explain to customers what happened, with little to no help from the IRS.

Tax preparer Renee Roberts says her phones haven’t stopped ringing, as customers check the status of their stimulus checks only to find it’s been sent to a bank account they’ve never seen before.

“They see four digits of an account number that doesn’t belong to them and so after researching and talking to people, we finally realized what had happened,” said Roberts.

Refund anticipation loans, debit cards causing problems

One thing you’ll find at most tax prep locations, from H&R Block to Jackson Hewitt, even TurboTax, is the option to pay nothing upfront.

You get the same service, but instead you pay for the service from your refund. Millions of Americans rely on this option, especially when money is tight.

Some call it a refund advance, where one of the first things you do is offer your direct deposit information.

Then when the IRS sends your refund, they send it to a temporary account set up at your tax preparer’s bank. The bank takes their cut, sends the tax preparer their fee and the rest is sent to your account.

When the IRS sent the stimulus, they used whatever process you used for your last return.

“I think different banks are handling this in different ways, but ours has chosen to send it back to the IRS, and at this point we don’t know how fast or how they are going to distribute these,” said Roberts.

What you can do

H&R Block and others are now encouraging customers to use the IRS “Get My Payment” app launched last week and set up direct deposit, where you can enter your bank account number.

As for Renee, she hasn’t had any luck reaching the IRS and neither have her customers.

Our Scripps sister station WTVF tried to reach regional IRS offices for information, but haven’t heard back. Treasury Department officials say they have processed nearly 80 million stimulus checks in the past week and are currently working to address the “glitch.”

As for Renee, she understands this is more than just money, this could be a lifeline.

“These people need these checks. A lot of people are in a very desperate situation without work and not knowing when they’re going to get this check because of this glitch is very frustrating for them,” said Roberts.

Roberts says she’s urging customers to reach out to local lawmakers, in hopes that they too can join in adding urgency for the IRS to resolve the matter.


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