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.
The IRS will not direct-deposit a rebate check for people who filed an electronic return through a private tax preparer such as H&R Block or Jackson Hewitt and got a loan in anticipation of a refund.
Also, in the Orlando Sentinel,
..is there ANYTHING your administration can't screw up???
Very enlightened comment.I sure would prefer my check to be direct deposited to someone elses bank. Wake up.
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