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Oops! Glitch puts economic stimulus checks into wrong accounts

12:10 PM EDT on Tuesday, June 3, 2008

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MELVILLE, N.Y. – Through the wonders of modern technology, some of those federal economic stimulus checks are being deposited directly into recipients’ bank accounts.

But some are not – and are instead winding up in the bank accounts of complete strangers.

“We do know of instances of problems; we’ve heard of situations where stimulus checks have gone to the wrong people’s bank accounts,” said Kevin McKeon, the Internal Revenue Service spokesman for the New York region. “We’re getting a lot of calls to the toll-free number.”

One taxpayer, who asked not to be identified, reported that he had discovered an unexpected deposit of $1,800 in his bank account. He said it was a deposit from the IRS bearing another taxpayer’s Social Security number.

He said he contacted the IRS and was told by an agent that the deposit was one of 15,000 misrouted checks sent out incorrectly as a result of a computer programming glitch.

Mr. McKeon said he could not confirm that figure or that a computer problem was responsible.

The stimulus checks are for up to $600 for a qualifying single taxpayer, $1,200 for a couple filing jointly, and $300 additional per child. Distribution began in late April, starting with taxpayers who had requested electronic deposits, and are continuing in weekly waves based on the ending digits in Social Security numbers. Paper checks will be sent out in the same way until July 11.

“Overall, the vast majority of stimulus payments are going out timely and accurately to taxpayers,” the IRS said in a statement issued in response to questions from Newsday. “To date more than 29 million stimulus payments totaling more than $27 billion have been issued.”

Those receiving misdirected IRS deposits must report the mistake to their bank, Mr. McKeon said. Similarly, paper checks sent to incorrect recipients must be mailed back to the IRS, he said, and any money spent before the recipient is aware of the mistake must be repaid.

 

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