DALLAS (CBSDFW.COM) - The tax service Jackson Hewitt demanded Friday, Jan. 8, the IRS send stimulus payments back to their clients after millions of payments went to wrong bank accounts.
The tax preparation company said the IRS sent payments to an estimated 13 million banks accounts that are no longer open or valid.
These temporary bank accounts are often set up by tax companies for their customers who opt to have tax preparation fees taken out of their refund.
These were the bank accounts connected to 2019 tax returns which the IRS used to determine where to send the second round of stimulus checks.
In many cases, stimulus payments sent to these accounts were required to be sent back to the U.S. Treasury because the accounts are no longer valid.
This has left millions of Americans who used online tax services waiting for their second stimulus payment.
The IRS said those who do not receive an advance stimulus payment by the January 15 deadline will have to wait and claim it as a credit of their 2020 tax return.
"This is unacceptable and Jackson Hewitt is demanding that the IRS immediately send our customers' stimulus funds back to our bank partner so the payments can get reissued to clients as quickly as possible," the company said in a statement Friday evening.
Jackson Hewitt said it is working with the IRS to get stimulus payments reissued as quickly as possible.
The company said it is in conversations with "the highest levels at the IRS, including the IRS Commissioner" and expect this issue to be resolved soon.
Also on Friday, TurboTax said millions of its customers affected by the IRS error will have their stimulus payments deposited starting January 8.
A TurboTax spokesperson said in a statement, "We know how important these funds are for so many Americans and we regret that an IRS error caused a delay."
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