What do I do? I was told my 2nd stim was sent to TT by error. Got an email saying refund would go from TT to bank acct, but bank acct was closed. IRS says I've been pd.

[sasarah-martin]

My stimulus was sent to a Turbo Tax account because I paid for my 2019 tax services with my refund. This was the infamous mix-up earlier in the year. I then got an email from Turbo Tax saying I should see my second stimulus payment in my bank account I used for my 2019 return. The problem is, that account has since closed.  My second stimulus never showed any information besides saying information was missing on Get My Payment. It never updated. I called Turbo Tax, Green Dot (the account TT used to collect for my tax prep) and the IRS. I was told to claim it on my 2020 Tax return. I did, but now the IRS is saying they already paid me. I was never paid, nor did I receive any letters or notifications. Has this happened to anyone else?

[KathrynG3]

Yes, this has happened to others. The IRS has directions for what to do.

A payment trace must be initiated to prove the check has not been deposited by you. See the link below for how to start this.

If it has been longer than the timeframes listed below, initiate a payment trace by completing and faxing Form 3911, Taxpayer Statement Regarding Refund. The link for that Form and the address to send it are at the link below.

Timeframe required before initiating a payment trace:

• 5 days since the deposit date and the bank says it hasn’t received the payment
• 4 weeks since the payment was mailed by check to a standard address for the first EIP; after February 24, 2021 for the second EIP
• 6 weeks since the payment was mailed, and you have a forwarding address on file with the local post office for the first EIP; March 10, 2021 for the second EIP
• 9 weeks since the payment was mailed, and you have a foreign address for the first EIP; March 31, 2021 for the second EIP

You can also call the IRS at 800-919-9835 and explain what has happened once the above time frame has passed.

Keep in mind, when a bank account is closed, the check is mailed to the last known address on file at the IRS. This can be updated by filing the 2020 tax return. Otherwise, mail Form 8822 Change of Address separately.

For more information, see: Economic Impact Payment Information Center — Topic F: Payment Issued but Lost, Stolen, Destroyed or ...

[sasarah-martin]

This is great information, but I have already called the IRS and was told then (Jan) that I wouldn’t be receiving a paper check and would have to claim it on my 2020 return. They are holding my 2020 return due to the discrepancy of the stimulus. Do I still file 3911? My stays never updated for stimulus 2. I was not told a. Heck was mailed, but to wait until I filed my taxes. My address hasn’t changed and my mailbox is locked. What do I do now? My tax transcript now shows this discrepancy, but is showing I am not owed the 2,400 stimulus.

[KathrynG3]

Yes, you will need to file Form 3911 to formalize the trace and prove that you have not received it. You must be referring to other members of your household to get to $2,400.

Full eligibility would have resulted in $1,200 + $600 = $1,800 per adult.

Dependent children under 17 would be eligible for $500 + $600 = $1,100.

To verify eligibility, see this article which includes details for eligibility: How do I claim the Recovery Rebate Credit?

For details about how each stimulus are calculated:

Stimulus payment 1 calculation

Stimulus payment 2 calculation

[sasarah-martin]

Yes, I am. There are two adults and two children in my household. 600x4 = 2400. 

[Cynthiad66]

As @KathrynG3 said your 2020 return has a section for Recovery Rebate Credit which provides for recovering missing Stimulus checks.  If you completed that part of the tax return then you should receive those missing checks in the 2020 refund.  If you did not, then  you will have to be patient until the IRS reconciles all of your Stimulus payments as long as they are not received.

If you believe your checks have been received and cashed by someone else, then you will have to report that to the IRS and start the Tracing process.

[sasarah-martin]

I did complete that part which is why they are holding my return. I’ve already called the IRS, Turbo Tax, the bank where I used to have an account. Now I’m waiting for the IRS to call me back. I’m thinking about getting a tax advocate because my return was very late last year. Now I haven’t received the second stimulus nor my return as it is being held to investigate my claim of a missing stimulus. Since last contact, they’ve updated my tax transcripts to reflect the refund, but it still shows the discrepancy between the refund and the stimulus.

[JotikaT2]

Asking for a taxpayer advocate is a good idea at this point, just so you have someone who can assist you along the way as you have identified the issue at hand.

They will be able to assist you as they will have access to more information as it relates directly to your specific tax return and situation.

Tax advocate services

[sasarah-martin]

So, I’ve called the tax payer advocate office for my state. I reached a recording saying IRS offices are closed, as are TAS offices and although workers are working from home, there is a huge delay. It just feels like a run-around all the way around. Any advice?

[KathrynG3]

You could request an expedited refund, but you would need to call 1-800-829-1040 and explain your hardship and request a manual refund expedited to you.

Check out this article under Don't have your Turbo Card anymore? for a replacement card if applicable:

Turbo Visa® Debit Card and Refund Advance Stimulus Payments

@sasarah-martin