Using Tax Preparer to File Taxes May Delay Your Coronavirus Stimulus Check

The IRS has already started sending the stimulus checks to eligible people. The process of sending checks is expected to be smoother this time, but is unlikely to be without issues. One such issue that may delay your coronavirus stimulus check is if you used the services of an online tax preparer to file your taxes.

This may delay your coronavirus stimulus check

The IRS started sending out stimulus checks last week, and many have already received the payment in their bank account. However, the IRS and major tax prep software companies admit that stimulus checks may be delayed for some people.

Many people for whom the IRS had direct deposit information started getting their stimulus checks from last week. On the other hand, many who were waiting for their payment and checked their payment status on the IRS “Get My Payment” tracker, were surprised to see a different bank account listed under their name.

Such an issue primarily arises for those who use tax preparer services for filing their taxes. Many taxpayers use “Refund Transfer” services, which enables them to make the payment for the tax preparer from the tax refund itself. This is a good option for those running short of money and time.

For this process to work, the tax preparer creates a new temporary bank account to receive the refund. Once the IRS sends the refund in this account, the preparer takes their cut and transfers the balance (if any) to the filer. The bank account is then closed. However, the IRS has this closed bank account on file, and this leaves some taxpayers in limbo.

What does the IRS say about it?

Source:- entrepreneur

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