The second stimulus check will be sent to millions of Americans on Monday. But many who filed their 2019 taxes with TurboTax and H&R Block told CNBC Make It that they experience issues in receiving their stimulus payments.
Second stimulus payments sent to unknown bank accounts
TurboTax 2018 SAN FRANCISCO, CA - FEBRUARY 22: Turbo Tax is seen on devices on February 22, 2018 in San Francisco, California.
Over the past week, the Internal Revenue Service (IRS) started sending the second round of economic impact payments worth $600 for each eligible individual and their child dependents. By January 4, millions of payments were slated to be deposited automatically.
However, TurboTax and H&R Block users paid for tax preparation services through their 2019 refund experience issue. According to many people who tested to track their deposit using the IRS Get My Payment tool, some of the second stimulus payments were sent to unfamiliar bank accounts.
According to CNBC, some users of the tax preparers claim the problem is the IRS sent the stimulus payments to temporary "pass-through" accounts the TurboTax and H&R Block set in previous years that they do not have access to.
Meanwhile, the IRS said the financial institutions would return the funds they received to the federal agency. Then, the IRs will reissue payments to the correct accounts, which might cause delays in people receiving their payments.
Read also: Second Stimulus Check Recipients: Do You have to be a US Citizen Living in America? IRS Says, No!
TurboTax and H&R Block customers face delay in receiving their stimulus check
If the Get My Payment tool shows "Payment Status #2,- Not Available," the taxpayers will not receive a second stimulus check, an IRS representative told CNBC Make It. In a press release, the IRS noted that "some payments may have been sent to a closed or inactive account due to the speed of the IRS in issuing the second round of payments.
A TurboTax spokesperson Ashley McMahon told CNBC Make It, "We know how important these funds are for so many Americans and that everyone is anxious to get their money." McMahon added that they partner with the IRS to help taxpayers receive their stimulus payments as soon as possible.
On Monday, H&R Block took to Twitter and explained that the error would be solved by the end of the day. But as of Tuesday afternoon, many of its clients have still not received their payments in the proper account. On the other hand, TurboTax and H&R Block users who sent their 2019 tax refunds directly to their bank accounts must receive their stimulus check deposit without encountering the issue.
According to Daily Mail, the much-needed $600 COVID-19 stimulus checks by TurboTax and H&R Block customers were sent to middleman services instead of directly sending them into American taxpayers' bank accounts. Last week, the IRS announced that the second round of stimulus checks would be distributed from January 4, giving some relief to people who became unemployed or are financially struggling due to the COVID-19 pandemic.
However, because of the funds sent to the companies first who must send them onto the individuals or back to the IRS, many TurboTax and H&R Block customers face delayed in getting their payment. Desperate taxpayers took to social media to hit out the federal agency and the two companies and asked when they will get their money, as per Daily Mail.
Read also: Second Stimulus Checks: $600 Payment Won't Increase to $2,000. Don't Worry; There's Still Good News!
