Directly deposited payments ended up in temporary or canceled bank accounts.
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The second stimulus check could be delayed for some taxpayers according to a warning by the Internal rents service (IRS) and by major tax preparation software companies.
The problem is that the directly deposited payments ended up in temporary or alternate bank accounts used to receive the first round of stimulus payments that the companies had closed. These include refund transfer services used with tax preparation software and prepaid debit cards.
The delay in depositing the second stimulus check could affect up to 14 million people who could have a lower income and be among the people who might need the stimulus money the most, as confirmed by a source from the banking industry to NBC News.
After the new legislation was passed, the second round of stimulus check payments began the distribution of $600 dollars from the night of December 29 through direct deposit by the IRS.
When some of the recipients started tracking their stimulus check through the tool Get My Payment they were surprised to see a different bank account number listed as theirs, however, there was no deposit money in their bank account.
A similar problem arose during the delivery of the first stimulus check in April. Some of the taxpayers used the Refund Transfer services that allow them to pay their Tax Prepared with the refund itself, an option that is attractive to some filers who also reported late payments due to a clerical error.
For the refund transfer to work, the tax prepared create a temporary bank account to receive the refund, then take your share and then pass the rest of the money to the declarant and close the account. But IRS used the closed bank account in the archive leaving some of the funds in limbo.
Depending on the situation, some of these contributors will continue to receive their funds deposited directly into their bank account or onto a re loadable prepaid debit card. However, others may face longer delays in receiving a paper check or receiving your credit when filing your 2020 taxes.
In some of the cases, the money was sent to a different account than the first stimulus payment, according to the tax preparation company. Her Block.
The IRS Get My Payment website may display an account number you don’t recognize. If you took a Refund Transfer, it may be reflecting that account number. Check your 2019 return to confirm.
Her Her Bloblocklock) January 5, 2021
Related: How to track your second stimulus check and other shipments through the USPS aThe?
He IRS informed that if the tracking site reflects a direct deposit date or partial account information “then your payment will be deposited there.” The site indicates that the payment date can take up to four weeks. In case the message “Payment Status # 2 – Not Available” aTheears in the tracking tool, then the only option to claim your payment will be through a tax credit claimcompleting line 30 of the 2020 form 1040 0 1040-SR.
The place Get My Payment it could display an account number that is difficult to recognize. This deposit will be transferred in the form of a direct deposit, paper check O Debit.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.