IRS: Some economic stimulus checks now delayed by 'glitch'

3:33 PM, May 12, 2008   |    comments
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Taxpayers and tax preparers, like H & R Block, are discovering that anyone who elected to have tax preparation fees deducted from their tax refund will not receive their economic stimulus checks through direct deposit. Taxpayers who filed their taxes using a software program or service that subtracted a fee directly from the refund will have to wait for their economic stimulus check to arrive in the mail now. The IRS originally announced that those who had tax refunds direct-deposited into their bank accounts would receive rebate checks the same way. However, once taxpayers who should have received the economic stimulus checks by direct deposit this past week started asking questions, the IRS discovered an unanticipated complication. Tax refund checks routed through a third party bank to allow tax preparation services to deduct their fees prevents the IRS from direct-depositing the check into the taxpayer's individual account. Instead, they have to mail out those stimulus checks through the U.S. Postal Service, meaning delays for many expecting the money. The IRS apologized, saying that the last two times they've done any kind of rebate, they did it by paper check only. This is the first time the IRS has had to deal with this direct deposit issue, a spokesman said. Taxpayers can check the IRS Web site below to see when they can expect their paper checks to go in the mail.

WKYC-TV

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