On Jan. 10, 2021, we announced the IRS has committed to reprocessing stimulus payments directly to our customers impacted by the IRS payment error. This decision was made after days spent advocating for our customers and pushing the IRS to rightfully send these much-needed stimulus dollars quickly to our customers.
The IRS’ choice to reprocess the funds via their internal system is not the choice we preferred. We offered multiple alternative solutions to the IRS, including one that would have allowed our customers to likely receive their payments as early as this week (Jan. 11 – 15). Unfortunately, because the IRS controls the stimulus funds and has possession of the money, the IRS has the final say on how the funds reach our customers. Nevertheless, we will continue to advocate for our customers and push on the IRS until our customers who have been deeply impacted by the IRS error receive their stimulus payments.
To help clear up any confusion surrounding this decision, we’ve compiled the commonly asked questions we’ve received since this announcement was made. Continue reading for additional details regarding the payment timing of the second stimulus.
You can also check out the IRS’ official statement by visiting the IRS Statement — Jan. 10, 2021 Update on Economic Impact Payments page.
Frequently Asked Questions When will I receive my stimulus payment if I’ve been impacted by the IRS error?
The IRS has committed to reprocessing the stimulus payments directly to impacted individuals later this month. In our last meeting with the IRS, we were told customers could expect to receive their payments by Feb. 1. Check out the IRS’ official statement regarding reprocessing the payments
Is there a chance I will receive my payment before Feb. 1?
The date the IRS gave us was Feb. 1. There is a chance some impacted customers may receive their payments before that date, but we cannot guarantee it. The processing timeframe all depends on the speed of the IRS getting their systems running and is dependent upon the processing time of each customers’ banking institution.
Does the IRS have my current bank information to reprocess my payment?
If your banking information has not changed since the last time you filed a tax return or received the first stimulus payment (whichever occurred last), then yes, the IRS has your accurate banking information. Unfortunately, if you changed your bank account since the first time you received a stimulus payment and you did not update that information with the IRS directly, they will not have your new banking information. IN that instance, you can expect to receive your stimulus payment as a paper check.
Can I update my banking information through TaxAct?
Unfortunately, no. Since TaxAct is not a banking institution and does not control the payment of the stimulus funds, we do not have the ability to update your bank information with the IRS. If your bank information changed since the last time you filed a tax return or received the first stimulus payment (whichever occurred last), you can expect to receive your payment as a paper check which will arrive through the mail.
How do I find out if I’ll receive my stimulus money by direct deposit or by check?
That information may be available if you check the status of yourContinue reading