Coloradans Face Issues Getting Their Stimulus Check Asked To Keep Trying

(CBS4) - Some Coloradans who are looking for help from the federal government to cover their expenses while unemployed say they are unable to update the IRS with their direct deposit information. The IRS launched an application on its website Wednesday to let you check the status of your payment and submit bank account details so recipients could avoid waiting for a check in the mail.

"It's a roller coaster. It's a day-by-day. Some days are good, and I'm like everything is going to be alright, we'll get money, we'll get funding. I'm going to be able to pay my bills," said Beth Ravenscroft, a hairstylist who operates as an independent contractor. "Then other days, it's like, oh my gosh, I really have absolutely no income coming into my house."

Ravenscroft has worked in the industry for more than 20 years and currently takes clients out of a salon in Littleton. She has to file her finances as a small business owner so she does not usually receive a refund from the IRS. Her husband is in a similar situation working in another industry. She has also tried to file for unemployment claims she qualifies for because of COVID-19.

"There's nothing I can do. The system is not up and running," she told CBS4 in a video conference call on Wednesday. "We don't get a refund like most people do with employers that pull taxes."

Wednesday morning she logged onto the IRS website to submit her direct deposit information to the IRS so she would not have to depend on a physical check. Her family has a mortgage, car payment, and other expenses that cannot wait until the payment is mailed.

Reports say those checks could take until August to arrive for some citizens, but the IRS could not offer an exact timeline when asked by CBS4. After several attempts, she still was unable to submit those details online. She kept getting an error message.

"I try not to think about it. We have some savings," Ravenscroft said. "We are responsible adults that have a nest egg."

The IRS said Wednesday 6.2 million people accessed the site successfully to see their status and another 1.1 million users submitted the information requested by the IRS. Staff for the agency told CBS4 updates will be made to the site and anyone having issues should check back for more information and try again in the days ahead.

"In terms of our current crisis, [the others] look like slow declines," Sloan Speck said over the phone. The associate professor of law at CU Boulder spoke to CBS4 Wednesday. "[The IRS is facing] unprecedented pressure to get these payments out as soon as possible."

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Speck specializes in tax law and says this stimulus package is one of only a few in the agency's recent history. The 2020 program doesn't compare to the previous programs approved by the government. By its nature, the IRS also is not meant to interact with individuals in this capacity. Tax payers usually contact the agency first and if someone from the IRS is reaching out, it likely is for an audit.

"The IRS has done a great job with what they got," he said. "The tax rebates are great, and they are kind of tried and true mechanism for helping people out."

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Speck also advises anyone struggling to get their status or submit information to keep trying as this is a new challenge for the agency, one it is not designed to handle under normal circumstances. He also suggests those most in need to reach out to targeted relief programs that may assist people based on their specific situation and get them money sooner.

"Do you start using your nest egg now or do you hopefully wait it out and can get up on your bills later?" she said.

Ravenscroft says it's hard to decide how to use the money they have given the potential for more difficult times ahead. Her and her husband are also responsible for their own health insurance as independent contractors and she wants to have money in case of any serious medical expenses that may come up for her family.

One of more than a dozen stylists working at the same salon, each one has a different set of circumstances factoring into what is best for them. But all want to go back to work and are looking for guidance on the months ahead. The governor said more information from the Department of Labor could come next week and businesses will have to plan to re-open eventually with social distancing measures still in place.

"I miss my clients, I won't cry," Ravenscroft said. "I miss my salon girls, I miss being in that community, it's like extended family."

She anticipates a backlog of clients trying to get appointments once their industry reopens, especially because there isn't a legal or healthy way for any stylist to operate from home while isolation orders remain in effect. That demand will only be aggravated by the likelihood of stylists unable to all work at the same time or on the same days.

"It's hard when you've done this for so long and it gets pulled away from you," she said.

The IRS said it will have more information about the various scenarios people may experience on their site and advise on how to respond as early as Thursday.

IRS: Get My Payment 

https://www.irs.gov/coronavirus/get-my-payment

IRS Statements: 

https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments

https://www.irs.gov/newsroom/irs-statement-on-get-my-payment-application-status-not-available