IRS bungles stimulus rebate payments

Thu May 15, 2008 2:42PM EDT

See Comments (327)

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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  • 46 Posted by kev_and_tara on Thu Sep 3, 2009 4:50PM EDT Report Abuse

    Darnit, those 20,000 jawbreakers will have to wait now.

  • 47 Posted by mart_007 on Thu Sep 3, 2009 7:09PM EDT Report Abuse

    Worked for over 20 years for the federal government,paid taxes, ended up on disibility, taxable disability annuity. We were told we don't get it either because its an annuity payment but its still taxed. IRS says NO to a lot of people, So a little late is better than not at all.

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

    Annamay92- to answer your question probably if you owed any back taxes, student loan debts or child support. They use the refund to offset those costs.

  • 49 Posted by moabish on Thu Sep 3, 2009 7:24PM EDT Report Abuse

    My son and daughter didn't get the amount that they thought they would. They figured it from the calculator on the IRS web site.

  • 50 Posted by rennydapooh78 on Thu Sep 3, 2009 8:36PM EDT Report Abuse

    I am glad to see this article. I was wondering where my rebate was. I used Turbo Tax for my mother and my taxes. The IRS should have put this information on their website that they were having problems. By the way, I was suppose to receive my rebate May 9th.

  • 52 Posted by bnahan on Thu Sep 3, 2009 3:10PM EDT Report Abuse

    Stop worrying about this check, if you all need 600 bucks so bad then go out and get a real job or find a second job. Then you'll never need government welfare. It was hard work that built this nation and now we beg for federal charitiy checks. We are so pathetic!

  • 53 Posted by vanique_23 on Thu Sep 3, 2009 10:31PM EDT Report Abuse

    Dubott I wouldn't exactly say that, but pray for a bush!!!! It is time for a Change People, wake up!!!!!!!! My girlfriend told me the other day that she is so far in debt that a Bill Collector called her asking for a extention...The collector told her it was hard to collect on a bill when she is behind in all of hers. Amazing!!!!!!! I don't know if the stimulus will get everyone back on track, but it probably will help. Just think if we are having all of the problems with the stimulus, what do you think would happen with the Gas Plan that John McCain and Hillary Rodman Clinton were trying to pass. By the way has anyone noticed that when Player Player Bill Clinton was in all of the trouble Hillary was known as Hillary Rodman Clinton. Now she is running for President she is just "HILLARY CLINTON."

  • 54 Posted by wezzerfay on Thu Sep 3, 2009 10:43PM EDT Report Abuse

    the ones of us who need it and they screw up

  • 55 Posted by tornadoblast2001 on Thu Sep 3, 2009 10:17PM EDT Report Abuse

    Well isn't that just like the irs, you would think.. they would come up with something a little more imaginitive this time.. Stimulus hah!!

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

    Sounds to me like it's a lot more than 1,500 taxpayers affected by this. MANY people were supposed to have their money deposited last week (or before) and never got it!

  • 57 Posted by sunstarr9499 on Thu Sep 3, 2009 9:48PM EDT Report Abuse

    There's no excuses for "us" not paying out taxes on time. There shouldn't be any excuses for them either!

  • 60 Posted by janice0839 on Thu Sep 3, 2009 4:28PM EDT Report Abuse

    the irs out soursed the jobs that should have been given to americans. why would anyone in india care if you get a check

  • 61 Posted by veteranboss on Thu Sep 3, 2009 10:34PM EDT Report Abuse

    I don't understand how anyone can complain about the checks.Totally unexpected in the first place. First of all your paying yourself this money. You the tax payer. . You can bet your azzz higher taxes after Nov will cover that shortfall. Why would anyone count on it in the first place? to pay rent? It wouldn't help any way. to buy gas? sorry temorary fix again. This money is to be spent to supposedly to stimulate the economy, yeah right. It is to take your minds off the war Bush did not put us in but congress did and like sheeple you go right along. A government big enough to give you every thing you want is large enough to take every thing you have. If you don't vote, shut up.

  • 62 Posted by boggie34609 on Thu Sep 3, 2009 3:11PM EDT Report Abuse

    If it was the other way around the IRS would be looking for penalties and intrest. The common peon has to listen I'm sorry and accept that.

  • 63 Posted by countrydrumman on Thu Sep 3, 2009 3:30PM EDT Report Abuse

    I'll Have to remember that next april 15th,I sent it to the wrong IRS ,maybe, I can't pin it down to a computer problem,or a cash flow problem, but it might be something like that

  • 64 Posted by brianincollierville on Thu Sep 3, 2009 3:13PM EDT Report Abuse

    There's no such thing as a computer problem - only human error. It would have to be a human who did the programming, and a human who did the testing. It's always easy to blame it on a "computer glitch" - but it's NEVER EVER a computer problem - only the way in which it was programed.

  • 65 Posted by cnh2u on Thu Sep 3, 2009 3:27PM EDT Report Abuse

    FYI, for anyone still waiting on your stimulus check, dont expect it to be as much as they said, alot of married people with kidsare finding out there checks are anywhere from $500-$600 short.

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