Americans overwhelmed with the fallout of the coronavirus pandemic were given some light at the end of the tunnel due to the promise of economic stimulus payments. According to our tax attorneys, these payments were part of a $2 trillion Covid-19 aid package, which was created to offer financial relief to those whose jobs were lost or who were otherwise suffering financially because of the virus outbreak. However, in many instances, these payments have become nothing more than a source of confusion, anger and frustration.
Many Americans Left Waiting for News About Their Payments
Although the United States Treasury stated that more than 80 million US citizens have recently received their economic stimulus payments through direct deposit, numerous individuals have been left to twist in the wind, bewildered about whether or not they will actually receive a payment at all.
Some taxpayers are still perplexed on aspects of the stimulus package, including eligibility. Others have been hindered by technical issues at the Internal Revenue Service or have experienced problems on the agency’s website. Another group of Americans have had to deal with delays in receiving their payments or unforeseen errors with their direct deposits. Bizarre situations have occurred as well, such as deceased relatives receiving stimulus payments.
The spokesperson for the National Foundation for Credit Counseling–NFCC–Bruce McClary, stated that the people depending most heavily on the stimulus funds are also, in many cases, the ones experiencing roadblocks with regards to accessing their money. McClary stated that this adds more pressure and stress to such individuals, as they are already in dire financial circumstances.
Additional Mistakes and Errors Slow Stimulus Payments to Certain Individuals
According to Yahoo Money, one individual, Cody Hopkins, was utilizing the IRS’s stimulus payment tracking tool and to his dismay, discovered that his $1200 payment had been deposited into the wrong bank account. He told Yahoo Money that the account into which the IRS attempted to place the money was closed since the summer of 2019. Hopkins is a 37-year-old basketball coach and is still employed in the state of Texas. He stated that he updated his banking information after filing his 2019 return in January of this year. The change was not picked up by the IRS, however, and subsequently the money went into the wrong account.
The Internal Revenue Service stated that changes in bank accounts were taken into consideration when the distribution plan was created, and the agency claimed that the stimulus payments would be deposited directly into the bank account associated with the filer’s most recent tax return. However, this was clearly not the case for Hopkins. He stated that the IRS did not follow that protocol in his situation, and that he experienced frustration that these issues have not yet been addressed publicly by the agency. In the meantime, Hopkins was forced to advocate for himself concerning this troubling delay.
As the number of coronavirus cases continues to grow and individuals experience financial peril, mistakes such as those listed above merely add stress to already anxious Americans. Contact a tax attorney if you have questions about your return or need clarification about legal issues concerning your taxes.