Issues still remain with second round of stimulus checks

Jennifer Lewke
Updated: January 08, 2021 06:32 PM
Created: January 08, 2021 06:08 PM

ROCHESTER, N.Y. (WHEC) — While the IRS has issued stimulus payments to more than 100 million Americans, many others are now learning they may not get their cash until tax time.  

When Karen Raymond logged on to the IRS website to check on the status of her Stimulus payment earlier this week, like millions of Americans, she saw a screen that said “Payment Status Not Available” so, she called the IRS and actually got through. 

“I called the economic hotline and the lady said it doesn't mean anything that they're still processing payments and I should get it, everybody should get it by the fifteenth so I'm like OK good,” she told News10NBC.  

But then, the IRS updated its website to say that if you’re still seeing “Payment Status Not Available”—you won’t be getting a direct payment and instead you’ll have to wait until you file your taxes to get the Stimulus cash.

Raymond doesn’t understand, she got the first Stimulus check direct deposited in her bank account without issue and nothing has changed since.  

The same is true for Lindsay Carey.

“This situation with the IRS, there's been so much miscommunication and lack of communication that it's just all over the place and no one really knows as far as the people what is going on,” she said.

The IRS says the issues are primarily impacting people who had their 2019 taxes prepared by companies like H&R Block or Turbo Tax and chose to have the preparation fees taken out of their refunds. In those cases, the tax prep companies set-up temporary accounts where they received your money from the IRS, took out their fees and then forward the remaining balance to your bank account. The IRS initially sent this second wave of Stimulus payments to those pass-through accounts.   

The IRS now says it is taking immediate steps to redirect the stimulus payments to the correct accounts for those affected and anticipates many additional taxpayers will receive payments following the effort.

“You would assume with us receiving the first stimulus that the IRS would have a plan in place and be ready to execute that plan as another stimulus comes out and it just seems like this round is more disturbing and more troublesome than the first round,” Carey said. 

Lawmakers in Washington are frustrated by the boondoggle this has turned into too.

“We'll work with the IRS on a case-by-case basis to clear this up, we're obviously not going to rest before everyone has had their checks come.  Frankly, this is very disappointing, this is the second round of stimulus checks so there's no reason for the IRS to have more problems on the second round then we even had on the first round but we'll get to the bottom of it,” Congressman Joe Morelle said.  

The IRS says the information you may now see in the “Get My Payment” tool, including account numbers and potential deposit dates, may not display accurately as it continues to work through updates. 

If you do not receive the payment by the end of January and believe you’re entitled to it, you’ll have to claim it on your 2020 taxes. For more information, click here.

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