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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  • 66 Posted by electronicetc on Thu Sep 3, 2009 3:53PM EDT Report Abuse

    Why are people blaming democrats? The problem with the economy is we need a new gardener in the white house to trim up the Bushes because they are getting out of control. Why are people budgeting this money into their lives anyway? Its kind of like making a mortgage payment with a lottery ticket, your taking a gamble. How about people shut up and pay their bills and quit spending money they don't have on crap they don't need. I read where people are relying on the payment to buy food these people must be republicans on the way they spend their money.

  • 67 Posted by andrea2292 on Thu Sep 3, 2009 2:53PM EDT Report Abuse

    We should have had ours in the first wave of direct deposits. We used Turbo Tax, yes, but we paid the fee separately. So we do not fit any of these criteria, yet, here it is 15MAY, 13 days after the promised date, and there is nothing stimulating MY account!

  • 68 Posted by jaime_finfrock on Thu Sep 3, 2009 4:27PM EDT Report Abuse

    This is something that they should have expected because it is so common; however, I can understand exactly why there is a problem. The issue is, when you have prep fees deducted from your refund and then you refund direct deposited into your account, your refund doesn't go directly to you from the IRS. What happens is that it gets re-routed to that company that prepared your taxes so that they can deduct their fees, then the company forwards the rest of the refund on to you in your account. So, for all of the people who did this, the IRS didn't have your direct deposit info, they had the preparers deposit info. It's a very common practice that the IRS should have anticipated; however, it is a fairly new system that they were using for these rebate checks and they probably didn't program it to recognize the difference between the accounts. I'm sure that they'll get it fixed and straightened out in no time.

  • 69 Posted by adonisball77 on Thu Sep 3, 2009 2:46PM EDT Report Abuse

    If you ask me I think they bit off more than they could chew. When you owe them money they make sure you pay them on time. My mom owes the IRS and they make sure they get their money no glitches. I once owed the government and they made sure they got their money. Now that they owe use all kind of excuess come out. And they tell us to be patient. Im supposed to get my money by by tomorrow I dont think it will happen. My friend has be waiting for his deposit and his ssn is lower than mine. The funny thing is we are both minorities. Matter of fact i havent heard of anyone getting there money. But I live in the hood so I wouldnt know. Im sure the rich got their money no problems.

  • 71 Posted by momo_55grandma on Thu Sep 3, 2009 7:25PM EDT Report Abuse

    If we owe IRS they call 24 hrs. a day write letters ect. But let them mess up and we get to pay for that too I guess.Maybe they need to be in our shoes for awhile.

  • 72 Posted by ml55mbzamg on Thu Sep 3, 2009 7:23PM EDT Report Abuse

    My mom got hers it was $ 1 what kind of bull S is that ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

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

    bnahan-i don't think the problem is that people don't have a real job. The fact is--people fall on hard times. But i guess you wouldn't know anything about that. No one is begging for a hand out but a couple of extra dollars in the bank doesn't hurt especially when your paying 3.70 a gallon for gas and it doesn't get you anywhere. But God forbid people expect anything extra even when you're in a full time grad student and working two jobs. I guess I should just quit school school and go get a real job then.

  • 74 Posted by chitownk9 on Thu Sep 3, 2009 3:23PM EDT Report Abuse

    The glitch they're talking about is from H&R Block. If you had your refund deposited on their Emerald Card then you will be receiving a check. H&R Block knew this back in January and did not tell their clients. The reason for this is so they would not lose any money from their "Bank products". I will never use H&R Block again nor will my family and friends.

  • 75 Posted by bobsharen on Thu Sep 3, 2009 3:10PM EDT Report Abuse

    Gtmiller thinks the IRS is run by "Democrates"...what a genius.

  • 76 Posted by txgrntd on Thu Sep 3, 2009 10:25PM EDT Report Abuse

    When I got through to them, yes I did speak to a breathing body, I was told that I would not get the $300. for the two boys of ours, because they were 17 yrs at the end of Dec., they must be under the age of 17 to qualify for the stim. pay. I explained to Butler that the IRS web site was not right that nothing was said about age. I guess that is one of the gray areas they choose not to explain (qualifying. I know of one couple no children that received $1200. We received ours of $600. count my lucky stars, or should I say bless the computer.

  • 77 Posted by christiemc1272 on Thu Sep 3, 2009 3:24PM EDT Report Abuse

    That explains WHY my direct deposit never happened. The IRS has a WHere's my Stimulus Payment thing on their website. When I put my information in it tells me that they haven't even processed my payment yet. I think I've learned my lesson not to use Turbo Tax to E-File - they my $ would have been direct deposited 2 weeks ago. Now due to the fact that I will be getting a check (which the IRS still hasn't told me yet) I won't get it for almost 3 more weeks. Hope that my kids fill up on food at school so I can use our food money on fuel so I can keep working. THis is pathetic of our government!!

  • 78 Posted by sheri1208 on Thu Sep 3, 2009 9:19PM EDT Report Abuse

    I am one of those still waiting...thought i was getting mine on May 9th but have been told by TaxACt it will be sent by paper because I had them deduct fees from my refund..This is ludacris...I checked my 1040 and my bank information and routing number is on there...Why can't they just use it instead of mailing a hard copy check...Plus I moved since I filed my taxes and had to send in an address change, so I guess that means I may never get it...I give up...

  • 79 Posted by sheri1208 on Thu Sep 3, 2009 9:19PM EDT Report Abuse

    I am one of those still waiting...thought i was getting mine on May 9th but have been told by TaxACt it will be sent by paper because I had them deduct fees from my refund..This is ludacris...I checked my 1040 and my bank information and routing number is on there...Why can't they just use it instead of mailing a hard copy check...Plus I moved since I filed my taxes and had to send in an address change, so I guess that means I may never get it...I give up...

  • 80 Posted by christiemc1272 on Thu Sep 3, 2009 3:24PM EDT Report Abuse

    SO since this messed up my account and my family was counting on this money can I send the overdraft and overdrawl fees that my bank has given me while waiting and crawling out of this never ending hole at the bank back to the governement? If they would have just deposited when they said, I would have never had all these fees. Should never have counted on our governement and the IRS. - Wow that is sad to say as an American, I can't count on our government to do what they say. Sad times are here!

  • 81 Posted by txgrntd on Thu Sep 3, 2009 10:25PM EDT Report Abuse

    It is not just the Turbo Tax software users that are not getting their checks. I did my daughters with software from another company, she was supposed to get hers May 9th, it never came, and she is still waiting.

  • 82 Posted by browne29556 on Thu Sep 3, 2009 3:14PM EDT Report Abuse

    how did they screw up this bad they are the pro's they dont do things like that.

  • 83 Posted by txgrntd on Thu Sep 3, 2009 10:25PM EDT Report Abuse

    to ANNAMAY92 if you received $1000. for two people you received TOO MUCH AND IF YOU RECEIVED THE MONEY FOR 3 PEOPLE YOU DID NOT RECEIVE ENOUGH. IT WAS $600 FOR JOINT FILERS AND $300 FOR EACH QUALIFYING CHILD.

  • 84 Posted by jackanddee1998 on Thu Sep 3, 2009 4:26PM EDT Report Abuse

    I am thankful that I received my check on the 2nd, but to my suprise I only got 500 and I am a single mother (widow) with a child. Then I have to sit there and listen to people who make more money than me every month talk about how they are getting 1200 because they are married. I am very lucky that I got my check and very happy that I received free money, but just a little disappointed in the determination of who gets what funds.

  • 85 Posted by sheri1208 on Thu Sep 3, 2009 9:19PM EDT Report Abuse

    I counted on the money and shouldn't have and that is my fault but if they would have told everyone that if you had direct deposit it would be direct deposited maybe everyone wouldn't be so angry right now...They should have gave all the scenarios...I really thought I was getting direct deposit and counted on that date...I know a few people that have gotten their checks...the lucky ones...the rest of us have to suffer until they figure this whole thing out...You can't even email them to ask a question...how absurd is that? I am trying to reach them by phone just to ask if they are going to process my address change in time for my paper check to go out, if not, guess what I am screwed again..Go figure...

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