IRS mixup over second stimulus check leave some Hawaii residents waiting empty handed

Mixups over second stimulus check leave Hawaii residents wondering why money was deposited into unknown accounts

HONOLULU, Hawaii (HawaiiNewsNow) - The latest federal stimulus checks started going out a week ago, but millions of people across the country still have not received them.

Mahea Traub of Mililani had been checking her bank accounts including the one that received the first check, but she said the money never showed up.

“I’m just really confused right now, at a loss for words,” said Traub.

Traub said she checked the IRS website, which showed the status of both her stimulus checks.

The first one deposited on April 15, 2020 and the second one on Jan 4, 2021,

However, the last four digits of the account in which the payments were deposited to did not match.

“That’s when I found that there was a deposit to an account, but I have no idea what account, an unfamiliar account number,” said Traub.

Traub is not alone. Her friend Zuri Aki of Mililani is dealing with the same issue.

“So, I contacted other people that I knew that were still waiting for their stimulus and that’s when I had them all do the same process,” said Aki. “And when we started figuring out that all our checks were deposited in unknown accounts, it seemed like maybe the IRS did mess up somewhere.”

Tax preparation companies like Jackson Hewitt said many clients have been asking for the status of their new stimulus payments and release the following statement:

“Unfortunately, the IRS has confirmed that certain processing issues on their end will cause payment delays to many Americans waiting to receive the relief they’re eligible for. It is estimated that the IRS has inadvertently sent payments to over 13 million bank accounts that are no longer open or valid.”

This appears to be affecting people who previously filed taxes with an online tax preparer.

Hawaii News Now reached out to the IRS who is exploring options to correct these payments, and if taxpayers have not received their full payment by the time, they file their 2020 taxes, they may claim the Recovery Rebate Credit on their tax return.

“We could really use that kind of stimulus to kind of offset that cost and I mean, we’re already experiencing really high cost of living here,” said Aki. So, anything helps.”

The IRS said by law, any financial institution that received the payments on behalf of former clients must return the payment to the IRS if the account is no longer active.

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