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More rebate problems

May 17, 2008

Obstacles continue to crop up for taxpayers anxiously awaiting their economic stimulus payments.

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We’ve already looked at some of the issues that are causing slow or no delivery of rebates, such as amounts misdirected to wrong bank accounts, multiple accounts selected for regular refund direct deposits, offsets to cover other debts and refund anticipation loans and/or filing fees rolled into refund products that resulted in paper rebate checks being issued instead of being sent straight to taxpayer accounts.

Unfortunately, the troubles keep piling up.

Here are some more instances, reported by the Associated Press, San Jose Mercury News, and USAToday, where economic stimulus payments are not getting into taxpayers hands:

  • About 350,000 eligible households have received only partial rebates. They didn’t get the additional $300 payment for their children because, in some cases, they didn’t check the box on their tax return indicating that their children were eligible.
  • In other cases, a few tax software companies failed to provide the information the IRS needed to make the payments. The IRS plans to mail those filers a "catch-up payment" this summer.
  • Taxpayers who filed jointly with a spouse who doesn’t have a Social Security number won’t get any rebate. This group includes thousands of legal residents whose spouses have applied for a Social Security number, but haven’t received the identifying digits.

According to this report from the CBS affiliate in Miami, if you haven’t received your check yet, it’ll likely be around July 11 before you see your money.

So much for fast track tax money to boost the economy.

Maybe all these screw-ups are the tax gods way of telling Washington that it needs to put a little more thought into all its tax-related processes before making promises to taxpayers that it can’t keep.

IRS rebate hotline: The IRS says despite these reported problems, most of the stimulus payments have gone out smoothly. y don’t believe there are any widespread problems with direct deposits of payments.

To date, the agency says nearly 30 million stimulus payments totaling more than $27 billion have been issued. Most of those were directly deposited to taxpayer accounts. Correct ones, we hope!

The IRS is working with taxpayers and banks on a case-by-case basis to resolve individual issues as quickly as possible.

You can check on the status of your rebate check at the Where’s My Rebate? feature, blogged about here. You also can call the IRS rebate hotline at 1 (866) 234-2942.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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