IRS bungles stimulus rebate payments

Thu May 15, 2008 2:42PM EDT

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If you have your hopes set on a big "economic stimulus" payment arriving in your bank account any day now, you might have to wait a bit longer. The IRS has announced that a subset of taxpayers is affected by a glitch that is delaying rebates sent to them.

The issue affects people who used a service or software program to do their 2007 taxes and opted to have the fee for those services deducted from the stimulus payment and sent via direct deposit. A bug (which the IRS has not elaborated upon) means those payments will now have to be made via a check sent via postal mail.

In addition to this bug, the IRS has confessed that 1,500 checks or direct payments were sent to the wrong taxpayers. While some reports blame this problem on a computer glitch, the IRS says that it can't necessarily pin the issue on a computer problem. Check any payments received carefully to make sure they're actually yours.

If you have received a check or inaccurate (or duplicate) direct deposit, you are required by law to mail the check back to the IRS and/or report the issue to your bank. If you spent the money, you'll have to pay it back as well. 

Finally, the IRS said today that 350,000 households aren't getting properly credited for children in the payments. Makeup checks will be sent out in July.

This isn't the first time the IRS has screwed up rebate payments. In 2001 it sent half a million taxpayers notices of impending rebates (in a similar stimulus/tax relief scheme to what we have this year) that they would never be receiving.

Still haven't gotten your payment? Best not to try calling the IRS, which is now dealing with a reported 2 million incoming phone calls a day. Instead, check the IRS.gov website and consult the payment schedule on this page. And be patient.

UPDATE: The IRS writes to say 1,500 taxpayers are affected, not 15,000.

Comments on IRS bungles stimulus rebate payments

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  • 26 Posted by josephnewton3 on Thu Sep 3, 2009 4:41PM EDT Report Abuse

    Wow that's just great that just ruins my sunny day. I need my money it seemed so close. Why don't they test the system before it they find out there is a problem.

  • 27 Posted by dubott on Thu Sep 3, 2009 3:49PM EDT Report Abuse

    save a country,,, " BURN A BUSH "

  • 28 Posted by dramaticaroyale on Thu Sep 3, 2009 3:48PM EDT Report Abuse

    A man lost in his geography: 1-"We have a firm commitment to NATO, we are a part of NATO. We have a firm commitment to Europe. We are a part of Europe." George W. Bush 2-"It's time for the human race to enter the solar system." George W. Bush 3-"The vast majority of our imports come from outside the country." George W. Bush %

  • 29 Posted by nicole.monique on Thu Sep 3, 2009 7:38PM EDT Report Abuse

    hey my entire household was skipped over (myself, sister and parents) because of this glitch. We were supposed to get ours two weeks ago-------- s. I gotta pay my car taxes!!!! Figures they would mess up something this simple. It's direct deposit. Now i gotta wait to June and my parents until July to get theirs. I wish they would get their act together and stop playing with people's emotions. they've had plenty of time to get this together. If you wanted to distribute this according to their ssn digits then they should have a glitch free system in place.

  • 30 Posted by ajalmighty on Thu Sep 3, 2009 2:48PM EDT Report Abuse

    The glitch in the IRS system for people using software or online programs (like taxact) is that when you got your original return direct deposited, they used a third party bank, and on your 1040, your account number and routing number are not listed. I was one of the two million callers who got THROUGH to the IRS, and that is what was explained to me

  • 31 Posted by pykkalo on Thu Sep 3, 2009 8:23PM EDT Report Abuse

    iscsidude, you're either someone who didn't earn enough to pay any taxes in the first place (so I don't know why you're complaining) or you make so much money that you're not eligible (in which case, I still don't know why you're complaining).

  • 32 Posted by annamay92 on Thu Sep 3, 2009 2:55PM EDT Report Abuse

    I RECEIVED ONLY A PART OF THE REFUND. I THOUGHT IF YOU FILED JOINT YOU WOULD RECEIVE 1200,BUT I ONLY RECEIVED 1000. HAS THIS HAPPENED TO ANYONE? IF SO, HOW ABOUT SOME INPUT?

  • 33 Posted by insaneslugger on Thu Sep 3, 2009 4:24PM EDT Report Abuse

    absolutely brilliant. Three cheers for the good old big brother! What a joke!

  • 34 Posted by dubott on Thu Sep 3, 2009 3:49PM EDT Report Abuse

    you go cybered_ out,,i am rite behind u 100 %,,ThEyer ALL D.H.s

  • 35 Posted by amylyn1137 on Thu Sep 3, 2009 2:53PM EDT Report Abuse

    I suppose this explains why we never received a check! I suspect this is much more systemic than they claim! Typical.

  • 36 Posted by billy_thekid32 on Thu Sep 3, 2009 3:08PM EDT Report Abuse

    i agree with nerd160 because you best bet if we the tax payers owed them money we would be in seriouse trouble is we screwed up. i do not believe this will help the economy at all. i have a bad feeling that next winter when it cost $600.00 to fill your oil tank in your house that next spring they will find lots of people froze to death in there houses.and i also feel that the economy will spiral to a depression. i am so proud to be an american.but if your a foreigner you can come to america and get a house and a new car,education for free. i just feel the american government needs an overhaul to help the american people to heck with anyone else and it will never change thats the scary part irregardless of who is in office.

  • 37 Posted by klkattner on Thu Sep 3, 2009 4:52PM EDT Report Abuse

    it happened to us to, but i just found out why thanks to this article. this just stinks.

  • 38 Posted by dubott on Thu Sep 3, 2009 3:49PM EDT Report Abuse

    I got papers saying I owe back taxes from 2005,, Must be charging me for the food stamps I was getting 2005,how do i figure that one

  • 40 Posted by mezzja300 on Thu Sep 3, 2009 7:17PM EDT Report Abuse

    listen this whole rebate thing is just another disaster that Bush has approved. Ok great stimulate what. Most people will use the money to pay bills. The fed gets to print more money devaluing the dollar further and all of the billion plus of rebate money is added to the deficit, great thinking, I really dont care what party is in office as long as we elect someone that can get the job done. Someone like Ron Paul should be given the chance as hes the only candidate that has stuck to his gunsas his voting record clearly shows, and get this he actually does what he says. Check his record. Paul serves on the House Foreign Affairs Committee (having been on the Western Hemisphere and the Asia and Pacific subcommittees); the Joint Economic Committee; and the Committee on Financial Services (as Ranking Member of the Domestic and International Monetary Policy, Trade and Technology subcommittee, and Vice-Chair of the Oversight and Investigations subcommittee. He actually knows his stuff. What does Bush know? nothing http://en.wikipedia.org/wiki/Ron_Paul

  • 41 Posted by lwattsathome on Thu Sep 3, 2009 7:01PM EDT Report Abuse

    why should the public have to pay for the irs mistakes? the way i see it is#they are not giving you anything. it was yours to begin with if you were a wage earner.shame on you irs.

  • 42 Posted by nicole.monique on Thu Sep 3, 2009 7:38PM EDT Report Abuse

    I'm glad someone got through trying to call. Because I didn't--and I have tried and tried and tried. I wanted to send an e-mail, but guess what they don't have one of those either. Maybe I shouldn't use turbota again next year. this whole refund thins is a waste of my time. guess I'll be pulling another dbl this weekend at work to pay the bills.

  • 43 Posted by latanyarutledge@sbcglobal.net on Thu Sep 3, 2009 4:56PM EDT Report Abuse

    our government is full of it! if any of you are smart you will save that stimulus check for a couple of months because you are going to need it just to eat and buy gas in a couple of months! bush will make sure that the world os in grest turmoil before he leaves! WE MUST PRAY!

  • 44 Posted by chick.coate on Thu Sep 3, 2009 3:23PM EDT Report Abuse

    One of my favorite sayings are is as follows: 1. Those who can, do. Those who can't, work for the government. One of the biggest lies: 1. I'm with the government and I'm here to help you.

  • 45 Posted by mac_attack_52 on Thu Sep 3, 2009 7:02PM EDT Report Abuse

    This isn't going to do anything to boost our economy. Getting out of Iraq and controlling the government waste is the only thing. The American people are being taxed to death and ironically that is why we declared independence from England!! Other countries pay 20% less taxes, have a higher life expectancy, free and better healthcare, free college educations and better schools. We allow the government to do what it wants with no checks and balances. The American people won't stand up and protest and force change. Instead we continue to allow the select few to become more and more wealthy, line the pockets of politicians and the rest of us die prematurely and broke. These checks are nothing more than a band-aid and a PR campaign for the Republicans. We aren't talking about a LOT of money here, the IRS and Bush want to act like they are sending us $5000.00 checks. I read an article the IRS sent out stating that we should seek the help of a financial adviser when we receive our checks, so we can properly spend it. $600-1200 will be just enough to get caught up on bills and fill up my cars. I'm not going to go out and buy a flat screen TV. This country is headed into dark times, I hope our next president is aware and does what is right. Before China takes over the world and we are all working for the Chinese.

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