This has been noted on Consumerism Commentary many times in the last month. If you filed your taxes using third party software like TurboTax or H&R Block, were owed a tax refund, had your filing fees or tax preparation fees deducted from your refund, and qualified for an economic stimulus payment, then you will not receive your payment in the form of a direct deposit. You will receive a paper check, even if you entered your banking information when filing your taxes.
Some of the tax preparers did an insufficient job of explaining this to customers at the time of filing. Ellen, a Consumerism Commentary reader, notified me that TurboTax is reaching out to its customers to blame the IRS, explain the situation, and provide a schedule of payments that matches the schedule posted at Consumerism Commentary in March. Here’s the full text of the email sent by Bob Meighan, VP of Consumer Advocacy at TurboTax.
Dear Valued Customer,
We want to provide you with the most up-to-date information about the tax rebate to which you may be entitled. Recently, you may have received a letter from the IRS advising you when to expect your Economic Stimulus Payment (rebate). That IRS letter may have inadvertently left off some important information. Taxpayers who chose to have their tax preparation fees deducted from their federal tax refund will receive their tax rebate in the mail, not via direct deposit.
Our records show that you chose this payment option in TurboTax. As a result, the IRS has determined that you will receive your tax rebate in the mail. This may result in you receiving your rebate on a date later than expected.
This situation, while not unique to TurboTax, is understandably causing some concern and confusion. To help further clarify the situation, below is the most current IRS rebate payment processing schedule, as well as additional resources about the tax rebates.
I hope you find this information helpful. If you still have questions, the best source for the most up-to-date information is www.irs.gov (see the “Rebate Payment Questions” link).
Vice President, TurboTax Customer Advocacy
Updated September 17, 2011 and originally published May 16, 2008.