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Important Update for Our Clients by Brent Turner, January 15, 2021

 

1/8/2021 UPDATE

To our clients:

As a follow-up to my email from last night, I’m writing with an update on the current status of missing stimulus checks.

Over the last 24 hours, we have had several productive calls with the IRS, Treasury Department, other governmental agencies, several banks and many of our tax prep competitors. I am encouraged by the collective willingness of government agencies to work with banks and tax prep companies to return those stimulus funds that were sent back to the IRS in early January to the banks. At the writing of this email, we do not yet have a final answer, but we have a commitment from the IRS to try to get the payments re-sent. 

When we know a date on which the funds might be returned, I commit to you we will make them available with all expediency.  If we do not have your direct deposit information, Liberty Tax® offices will be able to print your stimulus check, at no charge to you, almost immediately.

The entire executive team at Liberty Tax® has been working non-stop to understand and adapt to this continuously evolving situation. We KNOW that you need your money, and we know that you need information. You have my word that the moment there is an update to this situation, we will issue another communication.

Sincerely,

Brent Turner

 

 

 

To our valued clients:

On January 4th, 2021, Liberty Tax® was informed that the IRS sent funding for stimulus payments to Republic bank for customers that had used a Refund Transfer product last season and chose a check option for disbursement. Those accounts were in a closed status and by law, the bank was required to return them to the IRS. Some customers that elected electronic deposit or direct deposit from this account received the funding from the IRS, because the ultimate bank account (the taxpayers bank account) was still open and active. Since Tuesday morning, January 5th, 2021, we have been working non-stop, pleading with the bank and the IRS to re-open those accounts and send those deposits back, and allow us to print checks in our local offices, at no charge to our clients.

For two days both the bank and the IRS have been contemplating our recommendation,  and I am pleased to let you know that Republic bank has agreed to work through the logistics of doing this, however, I was notified at 2:30PM central time that the IRS will not re-submit the deposits. Because of the IRS’s decision, we are unable to fulfill any check issuance for the stimulus payment at this time.

Some banks did not return the money to the IRS, and still may be able to direct funds into an ultimate bank account for the customer. Unfortunately, Republic Bank is not one of them, and they are our partner bank.

We have been communicating to customers since yesterday as we tried to identify just what was happening and what was going to happen and how we could help customers.   For many of you, it wasn’t enough or timely enough. I am truly sorry.  This has been a difficult situation to manage through and we are doing our best. Information has come fast, furious and inaccurately from the IRS, so we just don’t know what to disseminate because it is changing intra-hourly.

None of that gets you your payment today, and with this communication, we hope to help you solve that problem. The latest IRS guidance is clear for those taxpayers who did not receive their stimulus payments. The very first thing you should do is go to the IRS website and use the “Get My Payment” tool to determine your status.

  1. If GMP reflects a direct deposit date and partial account information, then your payment is deposited there.
  1. If GMP reflects a date your payment was mailed, it may take up to 3 – 4 weeks for you to receive the payment. Watch your mail carefully for a check or debit card. (See the FAQ for EIP Card)
  1. If GMP shows "Payment Status #2 – Not Available," then you will not receive a second Economic Impact Payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.

If you are one of the millions of customers who will not get a stimulus deposit, I want to provide a nationwide offer to come to a local Liberty Tax® office for FREE, NO OBLIGATION STIMULUS CONSULTATION. Even if you have never been a Liberty Tax® customer or if you have and choose to go elsewhere, we fell the best we can do for our customers is provide this service.

All stimulus payments were intended to be in homes no later than January 15th, 2021. At this point, if you do not get your stimulus payment by the end of this week, you will have to include it in your 2020 Tax Return as Rebate Recovery Credit.  It is a terrible outcome and one that I am continuing to advocate against with the IRS, but so far this has fallen on deaf ears.  I have asked that the IRS issue checks directly to the taxpayer and have received a negative response. I will continue to advocate for you, our client, taxpayer and fellow American.  I am truly sorry we don’t have better news to share at this time. Should there be a change in status, as I intend to help bring about, we will quickly update you.

Sincerely,

Brent Turner

CEO

OFFICIAL STATEMENT ON NEW STIMULUS PAYMENTS

The IRS has confirmed that due to processing issues, payment delays have occurred for many Americans waiting for their stimulus payments. The IRS estimates that more than 13 million payments were sent to bank accounts that are no longer open or valid. The IRS is working on options to correct these payments, but has stated that any individual who has not received their full payment by the time they file their 2020 tax return, they may claim the Recovery Rebate Credit on their tax return as a means to receive the stimulus benefit. Please visit irs.gov for the latest updates and additional guidance regarding the most recent stimulus payments.