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.
|
27
vote
|
Shortcuts
Discussing:
- Howard Dean explains what I've been rambling about for weeks (1 reply)
- Feeling their oats (8 replies)
- Tea Party convention continues (22 replies)
- Have you had a TVA "Energy Right" audit done on your home? (16 replies)
- Medical Marijuana Bill Introduced In Tennessee (11 replies)
- Question: Why can't the Knox County Democrats come up with one viable candidate? (35 replies)
- Led Zeppelin coming to Bonnaroo? (16 replies)
- Open letter to MPC commissioners regarding the Midway Road Business Park (17 replies)
- HHS calls for Anthem Blue Cross to justify rate increases (1 reply)
- Toyota announces voluntary recall for ABS software update (1 reply)
- John Murtha RIP (4 replies)
- Missing Phil Hamby (1 reply)
Upcoming events:
- Feb 13 2010 - 11:00am (3 days 17 hours from now)
- Feb 14 2010 - 2:00pm (4 days 20 hours from now)
- Feb 14 2010 - 8:00pm (5 days 2 hours from now)
- Feb 19 2010 - 8:00pm (1 week 3 days from now)
- Feb 22 2010 - 6:30pm (1 week 6 days from now)
- Mar 2 2010 - 7:30pm (3 weeks 1 hour from now)
- Mar 24 2010 - 8:00pm (6 weeks 1 day from now)
User login
Navigation
Blog-O-Rama
- The Fightin’ 8th Race (Speak to Power)
- What’s that About Big Government, Rep. Hill? (Speak to Power)
- Valentine’s Day Zombies (Newscoma)
- Equal Pay For Equal Work Bill Up Tomorrow In Subcommittee (Speak to Power)
- Er, No. But Thanks For Asking (Southern Beale)
- East Tennessee Quality Growth to be featured on Feb. 22 (BlountViews)
- Farewell, Nashville Is Talking (Cup of Joe Powell)
- Gun Rights v. Voting Rights: A Birth Certificate Double Standard (Liberadio(!))
- My Very Cool Mom (Newscoma)
- Why Did Air America Fail? (Speak to Power)
- REGULAR MEETING - KINGSTON CITY COUNCIL Feb 9, 2010 – 7:00 P.M. (RoaneViews)
- Justifying Rate Increases (Speak to Power)
- Memphis Doctors Make Hard Choices In Haiti (Speak to Power)
- Propping up TennCare (Speak to Power)
- Very Sneaky:Two Voter Suppression Bills in One (Liberadio(!))
Media Blogs
- Ask General Petraeus: Submit Your Question For His Vanderbilt Appearance March 1 (Pith in the Wind)
- You Gotta Believe (AC Kleinheider)
- You Got A Better Idea (AC Kleinheider)
- The Two Faces of Lamar! (AC Kleinheider)
- Lamar Slams Stimulus, Then Begs for Cash (Pith in the Wind)
- A Lemon Law for Motorcycles (Tom Humphrey)
- AP Writer: Tea Party Not Right-Wing Nut Jobs (AC Kleinheider)
- Pass the Cable Tax or Forestry Jobs Get the Ax? (Tom Humphrey)
- Daddy’s Boy (AC Kleinheider)
- President And House GOP Leader Clash In Private Meeting (AC Kleinheider)
- Demo Chief Criticizes Faulkner Bill on Police Complaints (Tom Humphrey)
- Big Money In The Eighth (AC Kleinheider)
- Equal Pay For Equal Work (AC Kleinheider)
- But Your Mad Men Will Stay The Same Price (AC Kleinheider)
- A State House Zealot Shows His Shrewd Side (Pith in the Wind)
Local Paper
- Bredesen Signs Emergency Proclamation for Second Polk County Rockslide (State of Tennessee)
- DOE seeks small biz to tear down big building in Oak Ridge (Knoxville News Sentinel)
- Schools, District Awarded for Improving Student Behavior (State of Tennessee)
- VW hires first production workers (Knoxville News Sentinel Business)
- UT police gains accreditation by international association (Knoxville News Sentinel)
- East Tennessee sailor promoted, decorated for bravery (Knoxville News Sentinel)
- Asian restaurant opening in Bearden (Knoxville News Sentinel Business)
- Seymour schools getting $100,000 from U.S. Cellular (Knoxville News Sentinel)
- Officials confirm death of Oak Ridge native in Haiti (Knoxville News Sentinel)
- Reduce Deaths in Home Fires by Quitting Smoking (State of Tennessee)
TV News
- Murder of man renovating Knoxville rental house still a mystery (WATE local)
- Campbell County man overcomes meth addiction, helps others (WATE local)
- Charities say impact of Knoxville Open has dwindled or never started (WATE local)
- Man arrested after wife found murdered on Pigeon Forge honeymoon (WATE local)
- Vonore military mom makes care packages her mission (WATE local)
- Tanker crash shuts down I-75 North in McMinn County (WBIR Local)
- Monroe County man accused of child molestation (WBIR Local)
- Tell us what you think: Childhood obesity (WBIR Local)
- Bonnaroo tickets on sale; lineup being announced (WBIR Local)
- Tenn. could include motorcycles in 'lemon law' (WBIR Local)
- POLICE: E. Tenn. man hid dope in dreadlocks (WVLT Local)
- Giving the sweetest gift on Valentine's Day (WVLT Local)
- EPA says Emory River to be closed longer than hoped (WVLT Local)
- Officials warn cuts would hurt forest protection (WVLT Local)
- Husband arrested after woman murdered on honeymoon (WVLT Local)
Wire Reports
- Senate Democrats unveil jobs package (AP) (AP Politics)
- GOP blocks Obama labor board nominee (AP) (AP Politics)
- Obama meets with GOP, says can spur job growth (AP) (AP Politics)
- Murtha's death sets stage for marquee House race (AP) (AP Politics)
- Anthem asked to justify rate hike in California (AP) (AP Politics)
- Toyota seeks damage control, in public and private (AP) (AP Politics)
- Back-to-back snow storms put Congress on ice (Reuters) (AP Politics)
- NY governor says rumors that haunted him are dying (AP) (AP National News)
- ATF blames Texas church fires on serial arsonist (AP) (AP National News)
- Obama says US developing new sanctions for Iran (AP) (AP Politics)
- Another major storm headed to snowy Mid-Atlantic (AP) (AP National News)
- Workers spent 80-plus hours a week at Conn. plant (AP) (AP National News)
- Kerrigan family disputes autopsy report on father (AP) (AP National News)
- Murtha's death sets stage for marquee House race (AP) (AP National News)
- Mass. mom convicted of murder in 4-year-old's OD (AP) (AP National News)
- Washington Offices, NYC Schools Close as Storm Looms (Bloomberg) (AP Politics)
- Obama speaks hopefully of movement on jobs bill (AP) (AP Politics)
- Court halts rules on Edwards sex tape retrieval (AP) (AP National News)
- Evacuations under way for LA-area foothills (AP) (AP National News)
- Obama aide charges 'fear-mongering' over bomber case (AFP) (AP Politics)
About KnoxViews
Search
TN Progressive All-Stars
- BlountViews
- Crone Speaks
- Cup of Joe Powell
- Left Wing Cracker
- Liberadio(!)
- Newscoma
- OpenPen
- Pith in the Wind
- RoaneViews
- Sean Braisted
- Sharon Cobb
- Silence Isn't Golden
- Southern Beale
- Speak to Power
- TennViews
- Tiny Cat Pants
- TN Guerilla Women
- Vibinc
- WhitesCreek Journal
Nearby:
- AC Entertainment
- Ackermann Digital
- Blount Dems
- Carole Borges
- Craig Thomas
- David Oatney
- Discover ET
- Domestic Psychology
- Dwight Van de Vate
- Ellen Smith
- Farragut West Knox Net
- Fletch
- Fort Sanders
- Frank Murphy
- Gene Patterson
- Home/Work
- Infomaniac
- Instapundit
- Jack Lail
- Jack McElroy
- Jim Stovall
- Jonathan Hickman
- Julie Patchouli
- Knox Blog Buzz
- Knox Dems
- Knox Trivia
- KnoxBlab
- Knoxify
- KnoxPatch
- Knoxvillager
- Last Home
- Left of the Dial
- Les Jones
- Long Pauses
- Lynn Point Records
- MamaPundit
- Michael Grider
- 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
- Suzy Trotta
- Tabloid Boy
- Team Swap
- Terry Frank
- Thirteen Letters
- TN Clean Water
- Tom Humphrey
- Tri Cities
- Wendy Pitts Reeves
- Yellow Dog
Beyond:
- 10,000 Monkeys
- AC Kleinheider
- Andy Axel
- BlogNetNews TN
- Chris Jackson
- Daily Docket
- Democracy for TN
- Democratic Talk Radio
- Enclave
- Ginger Snaps
- Just Wonderin'
- Lean Left
- Lynnster Zone
- Mark Brown
- Nashville is Talking
- NewsTechZilla
- Pesky Fly
- Planet Rye
- Quiet Life
- Smart City Memphis
- Southern Liberal Living
- Sugarfused
- TN 4th District
- TN Dems
- TN Ticket
- TN Trivia
- TN Women's Caucus
- Volunteer Report
- West TN Liberal
- Your Liberal Friends
- Bob Stepno
- Dope on the Slope
- Facing South
- Great Smoky
- GTTim
- Hillbilly Savants
- Lovable Liberal
- Newsrack
- Opinari
- Wandering Hillbilly
At large:
- Agonist
- Alterdestiny
- American Street
- Atrios
- Burnt Orange Report
- Buzzflash
- Carpetbagger Report
- College Dems
- Common Cause
- Crooks and Liars
- Daily Kos
- Democratic Strategist
- Democrats.org
- Digby's Hullabaloo
- DSCC
- Eccentricity
- Huffington Post
- Lefty Blogs
- Liberal Oasis
- Media Matters
- MyDD
- Open Secrets
- Pam's House Blend
- Political Wire
- Politico
- Progressive States
- Seeing the Forest
- Senate Guru
- 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