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Tax rebate problems

Published on Sunday, May 18, 2008

There have been a few glitches with the federal tax rebates, though Internal Revenue Service officials said in both cases the affected pool of consumers is small. The last of the tax rebates by direct deposit should have shown up in bank accounts on Friday. Returns filed on or after April 15 will generally take two weeks to process and paper checks will take longer.

For those getting rebates checks by mail, the first checks went out on Friday and will continue weekly until July 11 based on the last two digits of your Social Security number.

Here's the schedule for the paper checks:

NUMBER — DATE

00-09 — May 16

10-18 — May 23

19-25 — May 30

26-38 — June 6

39-51 — June 13

52-63 — June 20

64-75 — June 27

76-87 — July 4

88-99 — July 11

You can also check on the status of your rebate check at http://www.irs.gov

• Rebates in wrong bank accounts: About 1,500 tax rebates nationwide have been deposited into wrong bank accounts, and the IRS is working with the taxpayers and banks on a case-by-case basis. The IRS said to date, nearly 30 million rebates worth more than $27 billion have been issued and the vast majority went directly to the correct bank accounts.

• Some child credit rebate money missing: As many as 350,000 households are not getting the $300 per child refund owed as part of economic stimulus rebate payments. The IRS says taxpayer error and problems with commercial tax preparation software were responsible for the problem affecting a tiny percentage of the 130 million taxpayers expected to benefit from the refunds.

The IRS said corrected checks will be mailed out automatically and taxpayers don't need to call or take any additional steps. However, those checks will not be sent until early July.
— Betty Lin-Fisher

There have been a few glitches with the federal tax rebates, though Internal Revenue Service officials said in both cases the affected pool of consumers is small. The last of the tax rebates by direct deposit should have shown up in bank accounts on Friday. Returns filed on or after April 15 will generally take two weeks to process and paper checks will take longer.

Get the full article here.


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