IRS Sends Millions of Stimulus Payments to Wrong Accounts | Boxelder

IRS Error Sends Millions of Stimulus Payments to the Wrong Bank Accounts

If you use a tax preparer service like TurboTax, Jackson Hewitt, or H&R Block, there’s a good chance the IRS sent your second round stimulus payment to the wrong bank account last week.

The IRS is rushing to fix the error, while millions of taxpayers wait for their $600 checks. TurboTax announced on Friday that it’s working with the IRS and the Treasury to correct the issue, and that the users affected should be receiving their payments in the next few days.IRS Logo

The source of the error comes from the temporary bank accounts that tax prep companies like TurboTax use to set up refund loans and other banking products. Since the IRS doesn’t have the bank account information for most of the taxpayers that use tax prep companies, their stimulus payments were sent to the temporary bank accounts instead.

H&R Block explained the problem in a recent tweet, “The IRS determines where second round stimulus payments were sent, and in some cases, money was sent to a different account than the first stimulus payment last spring.”

 

The IRS is Rounding the Corner to Resolution

Thankfully, both the IRS and the companies involved are finally rounding the corner on resolving the issue. TurboTax tweeted Monday morning that they “have successfully gotten stimulus payments to millions of TurboTax customers affected by the IRS.” 

H&R Block tweeted a similar message, “H&R Block has processed all stimulus payments to millions of our customers, whether via direct deposit to a bank account, check, or onto our Emerald Prepaid Mastercard.”

If you use a tax prep company like TurboTax and still haven’t received your stimulus payment, give Boxelder Consulting a call at 303-317-6111, and we’ll help you track it down.

 

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About the Author

A company founder standing by Colorado's Front Range

Tom Conradt

Co-Founder, IRS Collections Defense Attorney

Tom Conradt is the co-founder of Boxelder Consulting & Tax Relief, and has been practicing IRS Collections defense law for the past ten years. Graduating from the University of North Carolina at Chapel Hill, Tom is the lead IRS Collections Defense Attorney and heads the tax resolution department. Tom’s favorite part about working at Boxelder Consulting is hearing about the relief that clients experience after they sign up and start seeing immediate results on their case. Tom enjoys all the outdoor activities Colorado has to offer, including skiing, hiking and climbing. He is also looking forward to the return of indoor pickup basketball.

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