Info from http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6255.html:
Why did it take TurboTax take awhile to explain that payment methods would affect how and when rebates arrive?
The law creating the tax rebates, the Economic Stimulus Act of 2008, was signed by President Bush on Feb. 13. As soon as details of the act emerged and could be verified, TurboTax updated customer articles about the rebates. The updates pointed out that customers using the payment method with Santa Barbara Bank & Trust could receive their rebates by mail rather than by direct deposit.
It was not until mid-March, however, that the IRS announced the rebate payment schedule. The schedule showed that rebates would be mailed in order of the last two digits of taxpayers’ Social Security numbers — BUT that direct-deposit recipients would get theirs first.
…So, if they knew about this in mid-March, why were the e-mail notices sent out MAY 16?
For those of you searching for just the timeline, here it is.
(Sorry for the picture instead of a text table, I took a screenshot of this information from an e-mail.)
Please note, that if you chose to have your filing fees automatically deducted from your refund (ala TurboTax) instead of paying for them out of pocket, or filing in another manner, your check will be mailed to you on a date according to the schedule above, not direct-deposited into your bank account.
Edit: Bob Meighan, the VP of TurboTax left a comment on this post below, which has caused me to retract my rant about never using TurboTax again: (Link to comment.)
Bob addressed the issue of the late e-mail communication, as well as the fact that this delay affected “affected not only TurboTax customers, but all taxpayers who used a bank product to pay their fees … It would not have mattered if you used a competitor’s product, went to a franchise or a tax professional. This affected all players in this business.”
The comment above Bob’s, by “g” also listed a blog article which further clarifies this issue:
This blog, by a reputable tax lawyer, claims the IRS did not anticipate the number of people that were going to use electronic filing software, that they did not get enough notice about the package details to work it out, so the IRS became overwhelmed.
And, per Bob’s request, I’ve reviewed the articles he sent me in the broadcast e-mail, and I’ll post them here for you to review as well:
Other sources for current information on the rebate program are.
For more information on TurboTax and rebates, please visit http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6255.html
I’m leaving the original rant below as a reference point, but please note that this issue has been addressed by TurboTax. Thanks for reading!
Continue reading “Updated: TurboTax, IRS, and the late Stimulus Check Issue…”