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Due to IRS error, financial aid to millions of Americans was sent to the wrong place

According to Intuit TurboTax, a company that helps distribute payments, millions of COVID-19 quarantine aid payments have been diverted to the wrong customer accounts due to an IRS error. Writes about it Reuters.

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Two banking sources have confirmed a mistake that will delay the distribution of needed financial aid.

“Those who have not received a direct deposit should monitor their mail for a paper check or card,” the IRS notice said.

Intuit TurboTax tweeted Wednesday: "Unfortunately, due to an IRS error, millions of payments were sent to the wrong accounts and some people never got paid."

On the subject: Some US residents will not automatically receive new financial aid: what to do

One source said the IRS has used old information for millions of accounts that are considered closed or inactive. Banks are working with the IRS to return and redirect declined payments to the correct accounts, but it's unclear how long the process will take.

Department of Finance began processing the second round of payments on December 29 as part of a new Congressional COVID-19 relief package... Millions of payments were to be directly transferred by January 4 to taxpayer accounts.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York

“The IRS is verifying where the payments were sent. It turned out that in some cases the money was transferred to a different account - not the one in the first round of payments, ”- wrote on Twitter specialists H&R Block, another company that also helps to distribute payments.

Invalid payments are likely to be reissued in paper checks, although the IRS may ask taxpayers to file a 2020 tax return to receive payment.

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