PHOENIX (3 On Your Side) -- Jake Rutten's first stimulus payment was deposited directly into his bank account. When the second one didn't show up, he checked the IRS's 'Get My Payment' tool online.
"It said, 'payment status not available,'" Rutten said. "Then the IRS put up this thing that said 'if your payment status says not available, then you have to wait to file it on your taxes.'"
Rutten lost his job a couple months ago. He was counting on some of the stimulus money to make repairs to his truck that needs a new radiator.
"I'm relatively handy and I'm trying to make do and do it myself, but I can’t go get the things I need so I can possibly do something to work," Rutten said.
As 3 On Your Side reported, there were issues with the second round of stimulus payments. The IRS deposited some money into closed accounts. In other cases, the money was sent to some consumers’ tax preparers, including TurboTax, H&R Block, and TaxAct.
Many of those complaints center around people who filed their taxes in 2019 using either H & R Block or Turbo Tax.
This week, the IRS announced it is taking steps to reprocess payments for eligible taxpayers. According to the agency, payments will be issued directly from the federal government beginning in late January. The payments will be issued as paper checks or direct deposits.
"The IRS regrets the inconvenience and greatly appreciates the assistance of our tax industry partners in helping accelerate a resolution to this issue," the agency said in a statement.
Some say the solution won't happen fast enough. Curtis Campbell, the president of TaxAct said his company suggested options to the IRS that he believes would have ensured customers received their money as early as this week.
"We’re extremely disappointed," Campbell said in a video posted to social media, "Unfortunately, the IRS chose to go their own path, one which we believe does not help people most affected by the pandemic get their money quickly enough."
TurboTax is also communicating with its customers online. According to a series of tweets, the company said millions of its customers affected by the IRS error already received their money, but acknowledged for some, stimulus payments are "still at the IRS."
"Without the IRS releasing these funds to us, we do not have any way to get the payment to you," the company said.
According to the IRS, the reprocessed payments will be made automatically, and taxpayers do not have to do anything to receive the money.