The federal government has just started sending out Second Round Incentive payments, and many are already waiting for their money a little more than expected.
Many payments have been sent to passive or temporary accounts that taxpayers do not have. It is unclear how many people are affected, but tax preparation company Jackson Hewitt said the Internal Revenue Service sent payments to more than 13 million bank accounts that were no longer open or legitimate.
“The speed with which the law requires the IRS to issue a second round of economic impact payments may require some payments to be sent or no longer activated,” the agency said in a statement on Tuesday. Said in a statement on Tuesday.
Companies such as Turbotax, H&R Block and Jackson Hewitt sometimes set up temporary accounts for customers when they prepare returns. For example, customers who oppose the preparatory fee deducted from their refund may be issued one of these accounts, allowing the tax firm to take its share and then pass on the balance She goes. After that, accounts are generally inactive – but may still be associated with taxpayers in IRS records. Payments sent to inactive accounts must be returned to the Treasury.
Those who do not receive their payment immediately, they should so allegedly claim Recovery rebate credit On their 2020 tax return, the IRS said. (Credit 2020 Form 1040 or 1040-SR can be found on line 30.)
Taxpayers can check the status of their incentive payments with the IRS Get my payment equipment. If you do not recognize the account number that received the payment, it may be one of these temporary accounts.
Tax preparation companies said that they were working to get payments to customers.
H&R Block said it was already passing into customers’ bank accounts and some customers with incentive payments through prepaid debit cards. A TurboTax spokesman said the company was working with the IRS to help taxpayers receive their payments as soon as possible. And Jackson Hewitt suggested on its website that customers consider waiving their 2020 taxes.