IRS identifies issue with distribution of stimulus payments

WASHINGTON, D.C. (NBC) – The Internal Revenue Service is ironing out an issue that delayed millions of second-round stimulus payments.

The problem popped up during the second round of payments, affecting customers of various tax preparation companies, including “TurboTax” and “H&R Block.”

The IRS deposited those payments into the wrong accounts using temporary “pass-through” accounts set up by the tax prep companies but which the customers no longer had access to.

TurboTax and H&R Block say they’ve given the agency updated bank account information for customers.

IRS officials also say the agency has a new system to fix errors more quickly.

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