On January 4th, 2021, Liberty Tax was informed that the IRS sent funding for stimulus payments to Republic Bank for customers that had used a Refund Transfer product last season and chose a check option for disbursement. Those accounts were in a closed status and by law, the bank was required to return them to the IRS. Some customers elected electronic deposit or direct deposit from this account and received the funding from the IRS, because the ultimate bank account (the taxpayer's bank account) was still open and active. Since Tuesday, January 5th, 2021, we have been working non-stop, pleading with the bank and the IRS to re-open those accounts and send those deposits back, and allow us to print checks in our local offices, at no charge to our clients.
For two days both the bank and the IRS have been contemplating our recommendation, I am pleased to let you know Republic Bank has agreed to work through the logistics of doing this, however, I was notified at 2:30PM CST the IRS will not re-submit the deposits. Because of the IRS's decision, we are unable to fulfill any check issuance for the stimulus payment at this time.
Some banks did not return the money to the IRS, and still may be able to direct funds into an ultimate bank account for the customer. Unfortunately, Republic Bank is not one of them, and they are our partner bank.
We have been communicating to customers since yesterday as we tried to identify just what was happening and what was going to happen and how we could help customers. For many of you, it wasn't enough or timely enough. I am truly sorry. This has been a difficult situation to manage through and we are doing our best. Information has come fast, furious and inaccurately from the IRS, so we just didn't know what to disseminate as it is changing intra-hourly.
All stimulus payments were intended to be in homes no later than January 15th, 2021. At this point, if you do not get your stimulus payment by the end of this week, you will have to include it in your 2020 Tax Return as Rebate Recovery Credit. It is a terrible outcome and one that I am continuing to advocate against with the IRS, but so far this has fallen on deaf ears. I have asked the IRS to issue checks directly to the taxpayer and have received a negative response. I will continue to advocate for you, our client, taxpayer and fellow American. I am truly sorry we don't have better news to share at this time. Should there be a change in status, as I intend to help bring about, we will quickly update you.