The Internal Revenue Service says up to 350,000 households didn't get their $300 per child refund that should have been part of their economic stimulus rebate checks.
Stimulus payments roll off printing presses at the San Francisco Regional Financial Center in Emeryville, Calif., on May 8. People who filed their taxes electronically were supposed to get their stimulus money much quicker, but due to IRS glitches, hundreds of thousands have failed to get part or all of money. (AP Photo/Eric Risberg)
From wire reports
WASHINGTON — The Internal Revenue Service says up to 350,000 households didn’t get their $300 per child refund that should have been part of their economic stimulus rebate checks.
The tax agency says human error and computer glitches were responsible for the problem affecting a tiny percentage of the 130 million taxpayers expected to benefit from the paybacks.
The agency plans to mail out checks in July to those who missed out on the child refund.
The IRS also is apparently having problems with some stimulus checks being deposited into the wrong bank accounts..
“We do know of instances of problems; we’ve heard of situations where stimulus checks have gone to the wrong people’s bank accounts,” conceded Kevin McKeon, the Internal Revenue Service spokesman for the New York region. “We’re getting a lot of calls to the toll-free number.”
One taxpayer, who asked not to be identified, reported that he had discovered an unexpected deposit of $1,800 in his bank account. He said it was a deposit from the IRS bearing another taxpayer’s Social Security number.
He said he contacted the IRS and was told by an agent that the deposit was one of 15,000 misrouted checks sent out incorrectly as a result of a computer programming glitch.
McKeon said he could not confirm that figure or that a computer problem was responsible.
“Overall, the vast majority of stimulus payments are going out timely and accurately to taxpayers,” the IRS said in a statement issued in response to questions from Newsday. “To date more than 29 million stimulus payments totaling more than $27 billion have been issued.”
Those receiving misdirected IRS deposits must report the mistake to their bank, McKeon said. Similarly, paper checks sent to incorrect recipients must be mailed back to the IRS, he said, and any money spent before the recipient is aware of the mistake must be repaid.
This story contains material from The Associated Press and Newsday.
Posted in Business on Wednesday, May 14, 2008 7:00 pm Updated: 2:38 pm.
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