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Tax stimulus direct deposits delayed for some
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DENVER - Some taxpayers will have to wait for their tax stimulus payments from the government, even if they had their tax refunds issued through direct deposit. ![]() An Internal Revenue Service spokesperson in Denver says people who used a tax preparation service to file their returns, and had the tax preparation fees deducted from their tax refund will be getting checks in the mail. Here is the explanation from the IRS website: "If you requested that your electronic filing or tax preparation fee be deducted from the amount of your refund, you have entered into a financial agreement with the tax preparation provider or e-file software company for a refund anticipated check (RAC). Both Refund Anticipation Checks (RACs) and Refund Anticipation Loans (RALs) are bank products. The money that is deposited into your bank account comes from the financial institution associated with your electronic filing software provider or tax preparation provider, not directly from the IRS. Taxpayers who use RALs, RACs or enter into similar loans or financial agreements with their tax professional or tax software companies will not receive their economic stimulus payments by direct deposit. Instead they will get a paper check that will be issued according to the schedule that has been published for paper check distribution." People who used preparation services like Turbo Tax and H&R Block are affected. Jean Carl says the IRS is just learning of the problem and asks people to check the IRS Web site for the paper check schedule at www.irs.gov. Carl also says taxpayers will get their money, it just may take a little bit longer than anticipated. (Copyright KUSA*TV. All Rights Reserved.)
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