Millions of Americans were set to receive a second stimulus check via direct deposit on Monday. But many people who filed their 2019 taxes with H&R Block or TurboTax tell CNBC Make It that they are experiencing issues receiving their payments.
The IRS began sending out a second round of economic impact payments — worth up to $600 for individuals and each of their child dependents — over the past week. Millions were slated to be automatically deposited by Jan. 4, 2021.
But H&R Block and TurboTax customers who paid for the tax preparation services using their 2019 refund are experiencing an issue: Some of the new stimulus payments were sent by the IRS to an unfamiliar bank account, according to many people who tried to track down their deposit using the IRS Get My Payment tool.
Some customers of the tax preparers say the issue is that the IRS sent the stimulus payments to temporary "pass-through" accounts set up by H&R Block and TurboTax in previous years that they do not have access to.
The IRS says that the financial institutions that received the funds will return them to the IRS, and then the IRS will reissue payments to the right accounts. This will cause delays in people receiving their payments.
West Virginia resident Andrew Peterson, 26, is expecting $600 for himself and for his two-year-old daughter but tells CNBC Make It that he has been unable to get answers from TurboTax or the IRS about the status of his payment.
"Now I feel in limbo, at the mercy of the powers that be, with no answers and lots of questions," says Peterson.
'Status not available'
Others, like Lisa M., a 42-year-old Kansas resident who asked that her full name not be used for privacy concerns, are seeing "Status Not Available" when using the IRS tool, despite receiving the first check with no issues. Many calls and emails by customers to the companies and the IRS are going unanswered.
"Nothing has changed with our accounts, address, etc.," Lisa tells CNBC Make It.
A representative from the IRS tells CNBC Make It that taxpayers will not receive a second stimulus check if the Get My Payment tool shows "Payment Status #2 – Not Available." If you receive this message and don't receive a payment, the agency says to claim a Recovery Rebate Credit on your 2020 tax return.
The agency noted in a press release that "because of the speed at which the IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active." The representative did not answer why so many H&R Block and TurboTax customers, in particular, were affected.
"We know how important these funds are for so many Americans and that everyone is anxious to get their money," Ashley McMahon, a TurboTax spokesperson, tells CNBC Make It. "We are partnering with the IRS to help taxpayers receive their payments as quickly as possible."
H&R Block said on Twitter Monday that the error would be fixed by the end of the day. But many customers told CNBC Make It that they have still not received their payments in the correct account as of Tuesday afternoon.
H&R Block or TurboTax customers who had their 2019 tax refunds sent directly to their bank accounts should receive the stimulus check deposit with no issues.
This article has been updated with comment from the IRS.