Bank account confusion causing delays in stimulus payments

Updated: Apr. 16, 2020 at 6:11 PM CDT
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GULFPORT, Miss. (WLOX) - Many people who were anticipating receiving their CARES Act stimulus payment have not received them.

If you had a loan advance against your tax refund through your tax preparer, your payment will likely be delayed.

It is a question Verlon Herbert, owner of Verlon’s Business and Tax Service, has been fielding from her customers who don’t understand why they haven’t received their coronavirus stimulus payment yet.

Tax customers who were paying their tax preparer out of their refund had a bank transfer account that was set up for tax refund only.

After the money was removed from that account, it is closed.

The IRS has tried to send stimulus payments to those accounts, but they are being rejected by the bank.

“The bank, in turn, they are rejecting any stimulus payment that is coming to the bank. They are sending it back to the IRS and the IRS will turn around and mail you a check in the mail,” Herbert said.

If your stimulus payment has been processed but rejected because of inaccurate banking information, you will have to wait for your check to be mailed. If the IRS does not yet have your information on file, you can add it to their Get My Payment portal.

“A person can go in and put their bank account and routing information so they can get their stimulus money direct deposited,” said Ed Jones, co-owner of Anchor Tax Service. “You have a lot of people who owed taxes so there is no banking information on hand.”

If you did not file taxes and receive money from any other government agency, you will receive your stimulus payment through them.

“Those who are on social security or maybe on VA disability or get SSI, they’ll get their payment through the agency that normally pays them every month,” Jones said.

You can also receive your stimulus payments to the Cash App or PayPal.

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