Tax guide

I haven’t received my second stimulus payment and I used eCollect last year to have my prep fees paid out of my refund – what should I do?

January 22, 2021

We continue to have regular discussions with IRS leadership about the re-processing status of stimulus payments that were initially sent to the wrong/closed accounts earlier in January.

We care deeply about making sure you receive your stimulus payment as soon as possible and we will continue to press for updates to ensure the IRS is on top of it.

Our communication with the IRS on January 21 confirms that they still intend to re-issue payments at the end of January. Here are some additional notes:

  • The IRS will re-issue deposits to the correct bank accounts for the millions of filers affected by this issue.
  • Deposits should hit between the end of next week and the middle of the following week.
  • If the IRS is able to determine that your personal bank account on file no longer exists (for example, if you closed your account), the IRS will send a check instead.
  • Once the IRS has re-issued all payments, the Get My Payment (GMP) Tool will be updated with the last 4 digits of the correct account number. In addition, if the IRS intends to send a check, this will be reflected in the GMP Tool. We expect GMP to be updated around January 29.
  • Important: If a re-issued deposit fails for any reason, you will need to claim your stimulus payment when you file your 2020 tax return.

January 11, 2021

The IRS released another statement late in the evening on January 10, 2021. Click here to read. Key information from this IRS statement:

  • The IRS will reissue stimulus payments for taxpayers who did not receive the second Economic Impact Payment in instances where the bank account identified has been closed.
  • The payments will be sent later this month – deposits should start hitting accounts around February 1.
  • This impacts taxpayers whose tax preparation providers were unable to deliver funds to people as a result of IRS guidance, and are now waiting for the IRS to re-process payments related to these accounts.
  • Payments will be issued directly from the government later this month (software companies and their bank partners are not in possession of these funds).

We know how important these payments are to our filers. We are relieved to learn the IRS is going to reissue these payments and we know they are working hard to quickly distribute over 150 million stimulus payments. However, we are very disappointed with how long it will take for the IRS to make this right.

We, in collaboration with other affected software companies and banks, have done everything we can to impress upon the IRS the importance of this matter. As mentioned in the IRS statement, our bank partner, and other software companies’ bank partners, were unable to deliver funds to people as a result of IRS guidance regarding these payments. 1040.com did not cause this issue to occur, our bank partner did exactly what the IRS told it to do, yet some of our filers, and some filers of other reputable tax filing companies, must now wait for the IRS to re-issue the payments. We are very sorry for the inconvenience.

Those affected should receive their stimulus payment from the IRS around the end of January/first of February, which means you’ll receive it much sooner than if you had to wait to claim it on your tax return. Please watch your bank account and mailbox for your stimulus payment later this month.

January 8, 2021

Unfortunately, the IRS made a mistake and sent millions of payments to the wrong accounts. Because of this, many taxpayers, including some 1040.com filers, have not received their payment. 

As announced today (January 8), the IRS is taking immediate steps to redirect stimulus payments to the correct account for those affected. It is anticipated that many taxpayers will receive payments following this effort.

We are working tirelessly with the tax software industry, our bank partner, and the IRS to get this money distributed to affected taxpayers as soon as possible.

If you checked ‘Get My Payment’ and received a response indicating a direct deposit was to be sent to an account you do not recognize, the IRS advises to continue to monitor your bank account for a deposit.

The IRS Newsroom will have the latest IRS updates on this issue: https://www.irs.gov/newsroom.

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