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Still haven't got your 'stimmy'? The IRS might have sent your stimulus check to 'closed accounts'

Many saw their second stimulus checks being deposited in temporary 'pass-through' accounts set up by H&R Block or TurboTax to collect tax prep costs from the refunds

Still haven't got your stimulus checks? The IRS is the one you should be blaming. According to reports, people who filed their 2019 taxes with H&R Block or TurboTax saw their second stimulus checks deposited in temporary “pass-through” accounts set up by these tax software providers to collect tax prep costs from the refunds.

IRS in a press statement said: "Payments started going out last week and will continue through mid-January. Direct deposit payments are being made first to those that have valid routing and account information on file for direct deposit purposes. Because of the speed at which IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active."

The statement added: "By law, the financial institution must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active. While the IRS is exploring options to correct these payments, if you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return."

Many people are tweeting about how these misdirected payments have jeopardized their living situation. One Twitter user posted: "Just emailed my landlord and said 'Stimmy hasn’t arrived because the IRS is incompetent. I get paid on the 14th. If you evict me, you evict me. Bless." Another tweet said: "If anyone on the tl is still awaiting stimmy’s, I have some info: The IRS screwed up royally. People’s checks were sent to H&R Block, Turbo Tax or, wherever their online taxes were prepared."

H&R Block and Turbo Tax were overwhelmed with calls about people asking if their stimulus payments had been sent back to the IRS. "@HRBlockAnswers I need to know if you sent my payment back to the irs your phones aren’t taking any callers and it’s constantly hanging up," said one frustrated tweet, while another said: "So basically if you filed via Turbo Tax don’t expect $$ any time soon. Good job IRS, way to help out millions!" 

There were several tweets mocking the IRS for its incompetence at such a crucial time when millions of Americans are waiting for the checks to tide over a difficult time. "So, if you used turbo tax or H&R block, your stimulus isn’t coming anytime soon. The IRS sent your money to them or to your debit card (with the efiler) instead of the dd information that they have had on file for years." Another user wrote: "American people just trying to live off the scraps the government is giving them: Will I get my stimulus check soon? The IRS... f**king everybody who used Turbo Tax & H&R Block over"

The ultimate fate of the stimulus checks reaching their recipients will depend on which company you filed your taxes through. "From what I've seen H&R Block is redirecting the payment to its intended recipient (for the most part). Turbo tax rejected the payment sending it back to the IRS. Where at best guess it will be sent out as a paper check or be claimed on 2020 taxes," said one tweet, informing others of what they could expect if their stimulus payment had gone to these companies. 

H&R Block tweeted about the situation from their official handle saying: "Don’t worry – we have sent these payments on to the method you chose for Refund Transfer: direct deposit, check or Emerald Card. The money should be there by the end of the day."

Meanwhile, Ashley McMahon, a TurboTax spokesperson, told the press: "We know how important these funds are for so many Americans and that everyone is anxious to get their money. We are partnering with the IRS to help taxpayers receive their payments as quickly as possible.” In this weird situation, it is the IRS that owes people an explanation rather than the other way round.