Still having trouble regarding 3rd Stimulus payment

[Goldie2126]

I checked my bank and my canceled checks and do not see a deposit for the amount IRS claims to have sent.  I did get Child payments directly to my bank so those were there.  I called IRS and they claim a check was mailed in March 2021 for $5600 even though the IRS letter I got was for $2,800. So I guess my husband should get a letter for the other $2,800.  Anyway, they told me on line 30 to fill in $5600 and claim recovery rebate. But If I did not get the money how does claiming it help?

[JillS56]

Claiming it on your return will not delay the processing and issuing of the refund.  If you do not claim the $5,600 like the IRS told you to when your return is processed the IRS will deduct the $5,600 from the refund as their records show that you have received the stimulus. 

My suggestion would be to report the amount as the IRS has indicated.   Then get your paperwork together and contact a Taxpayer Advocate in your area.   Taxpayer Advocate are there for the taxpayer and they help you resolve your issue.   This link is an article about the Taxpayer Advocate Service Taxpayer Advocate.

Taxpayer Advocate Service could investigate whether or not the check was returned and not posted to your account and thus the IRS claims you received the funds.

In summary, you should claim the $5,600 to avoid delays with the processing of your return and issuance of your refund.    Then contact the Taxpayer Advocate office for your area and have them assist you with getting the $5,600 check reissued.

[Goldie2126]

OK so by claiming then I no longer get a refund but end up owing the IRS money isn't that correct?  At the moment with everything in the return except this stimulus section I have a modest refund of a little over $1,000, but if I add in $5,600 then i owe money back and if I never got the money in the first place then I am really in the hole.

[DianeW777 · Accepted solution]

It's definitely a conundrum. My advice may vary a little however, if you never received the money through check or deposit, then I would not put it on the tax return.  There will be a delay by doing that, but putting it on the return indicates you did receive it when you didn't.

I also recommend like our awesome Tax Expert @JillS56 suggested that you immediately take steps to contact the Taxpayer Advocate Service (TAS).  Here is some details to help get you started:

1. You can click here to begin: TAS Qualifier Tool. or 
2. Submit a request for assistance - Form 911 Request for TAS Assistance (instructions are included)
3. Locate the local TAS Office for your area

This will get the process started for you.  It's not going to be a fast process because they are handling a large volume at this time. 

If you do not hear from TAS within one week of submitting Form 911, contact the Taxpayer Advocate office where you originally submitted your request. Incomplete information or requests submitted to a Taxpayer Advocate office outside of your geographical location may result in delays.