Taxpayers and tax preparers are discovering that anyone who elected to have tax preparation fees deducted from their tax refund will not receive rebate checks via direct deposit.
The problem relates to funds being routed to the tax preparer's third-party bank.
UPDATE: Based on the additional information in comments and thinking about this a little further, the IRS is handling this exactly right.
What it boils down to is that some taxpayers, either by getting a refund loan or having preparation fees deducted from their refund, had the third-party preparer's bank account listed as their direct deposit bank, and the third party is then responsible for disbursing the funds to the taxpayer.
In the case of the "rebate," the third party preparer may not be setup to accept it or disburse it, so the IRS is doing the only other thing they can do which is to mail those taxpayers a check directly instead of depositing it in some tax preparer's bank account.
So this sounds like one of those "that's a feature, not a bug" situations, and the right thing to do.
UPDATE: This and other questions answered in a recently updated IRS Economic Stimulus Payments FAQ.
|
33
vote
|
Shortcuts
Discussing:
- Duncan gets Tea Party stamp of approval (5 replies)
- Right to work and no income tax apparently not enough (22 replies)
- Larry Frank speaks (41 replies)
- Power surges - or, let the surging begin? (4 replies)
- Dueling BP headlines (1 reply)
- The axe hits hard: Office of Neighborhoods gone (24 replies)
- Going home? (11 replies)
- Confessions of a university twit (6 replies)
- Vonore mayor and Monroe Dem Party chair arrested (4 replies)
- Let the purging officially begin! (39 replies)
- Judge rules on Littlefield recall petition (5 replies)
- LED light bulb shopping tip (2 replies)
Upcoming events:
- Sep 9 2010 - 6:30pm (10 hours 33 min from now)
- Sep 10 2010 - 6:30pm (1 day 10 hours from now)
- Sep 14 2010 - 8:00pm (5 days 12 hours from now)
- Sep 19 2010 - 4:00pm (1 week 3 days from now)
- Sep 20 2010 - 8:00pm (1 week 4 days from now)
- Sep 30 2010 - 5:00pm (3 weeks 9 hours from now)
- Oct 16 2010 - 6:30am (5 weeks 1 day from now)
User login
Navigation
Citizen Blog-O-Rama
- Hillary Rodham Clinton: For Our Children & for Children Everywhere (Video) (TN Guerilla Women)
- TVA's Millions for Toxic Ash Spill Finds Odd Uses (Cup of Joe Powell)
- Worst Legislation in Tennessee? (TN Citizen Action)
- EPA will hold Knoxville coal ash hearing (RoaneViews)
- Courage (Stick With a Nose)
- Tell Us Something That We Didn’t Know (Stick With a Nose)
- There Is No Maybe About It (Sean Braisted)
- KNS Profiles Roane County's Jim Leitnacker (RoaneViews)
- be more specific (Domestic Psychology)
- Another GOP Healthcare Idea FAIL (Southern Beale)
- milkweeds (Rikki Hall)
- Things Change (Southern Beale)
- Da Mare's NOT running for re-election! (Left Wing Cracker)
- Today's Post (Southern Beale)
- I don't know how it could be any simpler (Left Wing Cracker)
Local Media Blogs
- House Democrat's Aide Sold UT Football Parking Pass for Profit (Tom Humphrey)
- Regents 'Out of Compliance' With State Law; Decisions Questioned (Tom Humphrey)
- University of New Mexico -- be proud (Jack McElroy)
- Clinton Rally for McWherter Has Issued 2,400 Tickets So Far (Tom Humphrey)
- TN to offer $2,500 rebate on electric cars (Michael Silence)
- Restaurant bans Fox News' talking heads (Michael Silence)
- State to Offer $2,500 Rebate on Electric Cars (Tom Humphrey)
- Oh, the irony of it (Michael Silence)
- New Haslam Ad Targeting African-American Voters? (Tom Humphrey)
- Obama bashing the rage with editorial cartoonists (Michael Silence)
- Rod Serling loose in Farragut? (Michael Silence)
- It's Tweetball time in Tennessee (Michael Silence)
- Crissy Haslam Pitches 'Passion for Children's Issues' (Tom Humphrey)
- Opening dates for new eateries (Carly Harrington)
- Social media: Twitter & Facebook (Randall Brown)
Local Paper
- Forecast: Patchy fog early, partly sunny later (Knoxville News Sentinel)
- 2 dead in apparent murder-suicide in Halls (Knoxville News Sentinel)
- New cameras to keep watch over Neyland Stadium (Knoxville News Sentinel)
- Kincannon chosen to lead Knox school board for third term (Knoxville News Sentinel)
- Developer ends Tellico work (Knoxville News Sentinel Business)
- Oak Ridge man shot in chest; police catch suspect (Knoxville News Sentinel)
- State briefs: Sept. 9 (Knoxville News Sentinel)
- Knox County Health Deptartment holding 'Fast Track' for flu shots (Knoxville News Sentinel)
- Lamar Alexander supports electric vehicles (Knoxville News Sentinel Business)
- Temporary site for school chosen (Knoxville News Sentinel)
Film at 11
- Jefferson County family with 9 adopted kids needs help after house fire (WATE local)
- Knox County School Board votes to revoke teacher's tenure (WATE local)
- Couple found dead in burning house; names released (WATE local)
- Knox County School Board votes on tenure revocation (WATE local)
- Jefferson county family with 9 children living in motel a week after house fire (WATE local)
- Rep. Roe talks jobs, President's economic push in Morristown (WBIR Local)
- 10 About Town: September 10-12 (WBIR Local)
- Vols rebound from poor practice (WBIR Local)
- Police standoff involving father and five-year-old ends peacefully (WBIR Local)
- Salvation Army to begin taking applications for Christmas assistance (WBIR Local)
- Area school hit by gunfire (WVLT Local)
- Crews put out fire in vacant E. Knoxville home (WVLT Local)
- UPDATE: Oak Ridge shooting victim in critical condition (WVLT Local)
- 20 more teachers for Knox Co. students (WVLT Local)
- UPDATE: SWAT standoff in N. Knoxville ends peacefully (WVLT Local)
Wire Reports
- Gov't: Spending to rise under health care overhaul (AP) (AP Politics)
- Obama implores minister to call off Quran burning (AP) (AP Politics)
- Crews contain 10 percent of Colorado wildfire (AP) (AP National News)
- Highway deaths fall to lowest level since 1950 (AP) (AP National News)
- Laura Bush to speak at 9/11 memorial fundraiser (AP) (AP Politics)
- Laura Bush to speak at 9/11 memorial fundraiser (AP) (AP National News)
- PROMISES, PROMISES: FAA fatigue rules finally near (AP) (AP Politics)
- Safety concern for Fla. gov. over 9/11 Quran burn (AP) (AP National News)
- Report: officer involved in previous shootings (AP) (AP National News)
- A whole different Playboy channel for the blind (AP) (AP National News)
- Soldier's father: Army was warned of murder plot (AP) (AP National News)
- New Muslim college welcomes freshmen in California (AP) (AP National News)
- Regret, apology not part of BP's oil spill report (AP) (AP National News)
- GOP outpaces Dems on Twitter (Politico) (AP Politics)
- GOP privately plots Boehner-run House (Politico) (AP Politics)
- Imam fears moving NYC mosque could inflame tension (AP) (AP National News)
- Storm that killed 2 in Texas continues north (AP) (AP National News)
- Detroit gets rare assist from suburbs for fires (AP) (AP National News)
- Quran burning flap a distraction from Obama agenda (AP) (AP Politics)
- Time Magazine: Listen Up, Dummies! Obama's Stimulus 'Clearly Helped' (Larry Elder) (AP Politics)
About KnoxViews
Search KnoxViews
Popular today
Popular this week
TN Progressive All-Stars
- BlountViews
- Crone Speaks
- Cup of Joe Powell
- Left Wing Cracker
- Newscoma
- Pith in the Wind
- RoaneViews
- Sean Braisted
- Sharon Cobb
- Silence Isn't Golden
- Southern Beale
- Speak to Power
- TN Citizen Action
- TennViews
- Tiny Cat Pants
- TN Guerilla Women
- Vibinc
- View From My Kitchen Table
- WhitesCreek Journal
Nearby:
- AC Entertainment
- Ackermann Digital
- Agrarian Urbanite
- Blount Dems
- Bottom Line
- Craig Thomas
- Daily Pulse
- David Oatney
- Discover ET
- Domestic Psychology
- Dwight Van de Vate
- Ellen Smith
- Fletch
- Fort Sanders
- Frank Murphy
- Gene Patterson
- Home/Work
- Instapundit
- Jack Lail
- Jack McElroy
- Jim Stovall
- Julie Patchouli
- Knox Blog Buzz
- Knox Dems
- KnoxBlab
- Knoxify
- Knoxvillager
- Last Home
- Les Jones
- Long Pauses
- Lynn Point Records
- MamaPundit
- Michael Silence
- MoxCarm Blue Streak
- Mushy's Moochings
- Phyllis Patterson
- Pittman Properties
- Property Scope
- Randall Brown
- Reality Me
- Resonance
- Rikki Hall
- Rob Huddleston
- School Matters
- Shane Rhyne
- Snark Bites
- Stacey Campfield
- Stick With a Nose
- Suzy Trotta
- Tabloid Boy
- Terry Frank
- Thirteen Letters
- TN Clean Water
- Tom Humphrey
- Tri Cities
- Wendy Pitts Reeves
- Yellow Dog
Beyond:
- 10,000 Monkeys
- Andy Axel
- BlogNetNews TN
- Daily Docket
- Democratic Talk Radio
- Enclave
- Ginger Snaps
- Just Wonderin'
- Lean Left
- Post Politics
- Quiet Life
- Smart City Memphis
- Southern Liberal Living
- TN Dems
- TN Ticket
- TN Trivia
- TN Women's Caucus
- West TN Liberal
- Your Liberal Friends
- Bob Stepno
- Facing South
- Great Smoky
- Lovable Liberal
- Newsrack
- Opinari
- Wandering Hillbilly
At large:
- Agonist
- Alterdestiny
- American Street
- Atrios
- Burnt Orange Report
- Buzzflash
- College Dems
- Common Cause
- Crooks and Liars
- Daily Kos
- Democratic Strategist
- Democrats.org
- Digby's Hullabaloo
- DSCC
- Huffington Post
- Lefty Blogs
- Liberal Oasis
- Media Matters
- MyDD
- Open Secrets
- Pam's House Blend
- Political Wire
- Politico
- Progressive States
- Seeing the Forest
- Skippy the Bush Kangaroo
- Suburban Guerrilla
- Swing State Project
- Talk Left
- Talking Points Memo
- Think Progress
- Truthdig
Government:
- City of Knoxville
- Homeless Ten Year Plan
- Knox Co Commission
- Knox County
- Knox County Code
- Knoxville Code
- State of Tennessee
- TN Code Annotated
- TN General Assembly
- U.S. House
- U.S. Senate
- U.S. Thomas LoC
- UT CTAS
- UT MTAS



Also, in the Orlando
Also, in the Orlando Sentinel,
Oh, George W. Bush....
..is there ANYTHING your administration can't screw up???
Very enlightened comment.I
Very enlightened comment.I sure would prefer my check to be direct deposited to someone elses bank. Wake up.
Mine was due today because I
Mine was due today because I filed online but because I had HR Block take the money out of my refund now I don't get it till 7/4. Doesn't make sense when the refunds came fast. Thank God I hadn't spent it yet anyway because of the economy it will only go for bills anyway :(
Use Turbotax or one of the
Use Turbotax or one of the free E-file options. HR block is worthless. If you need to pay someone to help with your taxes find a real CPA.
If you used turbo tax, they
If you used turbo tax, they also are unable to get your rebate check back to you sooner, it iwll come in the mail..I guess I needed to use a credit card to pay for the handling of my return..instead of having turbo tax take it out of the return..a BIG screw-up...
I understand the why behind
I understand the why behind the decision the IRS has made, but what irks me is this:
I tool out a RAL for my return since I was leaving for vacation in 2 days and needed the $$. In the payment section, where it discussed fees, etc. It actually talked about the Stimulus Payment and told me that I should verify my bank info for the direct deposit of said payment. At the time, I tried finding information on specifics that would delay my payment, or cause it to be sent via check. Nothing was found. Just the calendar that showed who was getting their payments when.
I made a very big financial obligation based on the fact that I was getting direct deposit on the 16th, an NOW I find out I will be mailed a check on July 4. I highly doubt the government will actually mail anything on a national holiday, and given the 7 days it normally takes snail mail to reach me, I should now receive it by July 12 ( assuming they mail it in the 5th).
I really wish they would have made this information available sooner so honest, hard-working people (like myself) don't get raped, once again, by our wonderful government.
Here's an idea; Don't spend
Here's an idea;
Don't spend money that you don't have yet. I hear of all these people that are mad at the government because they did not get their check 'on time'. The way I see it, we are lucky to get one anyway. I was supposed to get mine on May 9th, direct deposit, but since I had the third party take out, it will come somtime in June. I'm fine with that because I didn't spend it already nor am I waiting for it to come so I can spend it.
Wake up people, not everything is the governments fault, they didn't make you spend it before you go it.
Getting Real
Ya ill admit its nice to be getting a check out of nowhere, but if the government, our government, promisies the working people of america a little money relief in this second great depression, I would expect them to follow through. Wouldn't you? My point is not everyone can save their money because not everyone has it easy. People depend on those refunds and stimulus checks to help keep food on the table and a roof over their heads just because of this crap economy. Common people, get real!!
Hey Getting Real You live in
Hey Getting Real You live in a society where everyone thinks the world owes them. In Canada, there are no STIMULUS checks or subsidies like you get, and everyone actually works for what they get. Nobody has it easy, so get off your ass and do something about it and stop waiting for a handout.
what happens if i did my
what happens if i did my taxes myself on taxact.com and my direct deposit was due on the 16th and i have not received it yet. would that apply to me also.
I have the same problem. I
I have the same problem. I received the second letter from the IRS showing I would receive the refund electronically deposited and that it would be by 5/16/2008. It is now 5/19/2008 and I still haven't received the money. I did my taxes on HR Block website through the free file link on the IRS website.
The Issues
There are two issues involved here. First, the IRS does not send refunds to commercial tax preparation firms; when a taxpayer asks to have the fees withheld, the four or five banks in the country that process refund checks will create an individual account for the taxpayer. When the bank receives the refund, it will either issue a check electronically to be printed at the tax preparer's office or it will direct deposit the balance to the taxpayer's personal bank account. At that time, the account is closed. It would appear that when the IRS sent out the initial payments as direct deposits, the accounts were closed and the payments could not be processed; consequently, the IRS had to switch to Plan B and to schedule those deposits for payment by check.
The second issue that was not made clear when the payment schedule was announced was the fact that the schedule only applied to those tax returns that had been processed by the IRS by April 15. For those taxpayers who filed in April, earlier if a paper return was filed, the published schedule does not apply.
no rebate yet
my son was to get his rebate check on 5/16 that what my computer gave us as the date to be deposited in his account now it does not have any info on his at all real nice work our gov. does they could have told us that there would be delays because of filing on line this really stinks
Still waiting
I am tax professional with liberty tax service, having done over 3000 tax returns personally since 2003. This whole rebate blind sided all of us in the business. My office, in a effort of community service prepared and filed tax returns for people who were not required to file but needed to file just so they could get there stimulus check at no charge.
I have lost track of how many clients have called my office blaming me for Stealing there rebate check due to shoddy reporting by the media suggesting any of us are making money off of this. To make it even worse it’s been reported that the IRS still direct deposited over 15,000 stimulus checks the wrong accounts, including my personal one.
http://www.newsday.com/news/local/longisland/ny-listim0515,0,1840951.story
Or even shorting the expected checks
http://www.bnd.com/267/story/341464.html
Or my favorite one so far. Some people are getting bigger stimulus checks that as of yet, they are not being required to pay back!
http://www.cfosnafu.com/irs-glitch-doubles-refund-for-lucky-few/
But there have been quotes “tax prepares just keep getting richer, and taxpayers a paying for it”. Between my donating the free preparations (I stilled paid my staff for the work they preformed) and upset customers demanding a refund of the Preparation service fees. This has only COST ME money.
My lump was deposited, as
My lump was deposited, as predicted, on the sixteenth. Two days ago I got a form letter telling me that I could expect a direct deposit on or about the sixteenth.
Visit us at
The Home
Ya gotta love the gubmint.
Ya gotta love the gubmint.
Stimulus payments
I do not think , George W. Bush or the IRS knws what they are doing this has been a total disappointing , is a mild version of what chaos it has caused people...... What are we to do next month ?
Post new comment