NY unemployment account shows negative $2000 after IRS stimulus error - bank and IRS both pointing fingers

This sounds like a payment reversal issue. When the IRS or NYSDOL deposits money by mistake, they can pull it back, but there should definitely be transaction records of both the deposit and withdrawal. Call your bank again and specifically ask to speak with their ACH department - they handle electronic transfers. Request a complete transaction history report including any reversed or pending transactions. The bank should be able to provide documentation of exactly what happened that you can then take to the IRS or NYSDOL.

omg same thing happened to my cousin last month!!! his account went negative too and he's STILL fighting with everybody about it. nobody wants to take responsibility smh

I spent 3 weeks going back and forth between IRS and my bank for a similar issue. NOBODY could help until I called NYSDOL directly and got through to an actual claims specialist who could see on their end what happened. Turns out it was an error in their system that sent out duplicate payments to thousands of people, then automatically recalled them without proper notification. The problem is getting through to someone at NYSDOL who can actually help. After failing for days with the regular number, I found a service called Claimyr (claimyr.com) that got me through to an agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Rdqa1gKtxuE Once I got through to the right person, they were able to document the error and send me an official letter explaining what happened that I could take to my bank to get the negative balance resolved.

why did u move money to cash app so fast?? that looks suspicious tbh. maybe thats y nobody helping u

This is a complicated situation that involves multiple agencies. Here's what you need to do: 1. Request a formal written statement from your bank showing the complete transaction history including timestamps. Specifically request documentation of the initial deposit and the reversal. 2. File IRS Form 3911 (Taxpayer Statement Regarding Refund) to trace the payment. This is the proper channel for resolving stimulus payment issues. 3. Contact NYSDOL and request a supervisor - regular agents may not have access to the special payment systems that handle stimulus distributions through unemployment accounts. 4. Document all communication: dates, times, representative names, and what was discussed. 5. If your bank is charging overdraft fees due to this error, ask them to freeze these fees while the investigation is ongoing. I've seen many cases like this resolved, but it takes persistence and proper documentation. The critical issue is determining which agency actually initiated the erroneous deposit, as that agency needs to provide formal acknowledgment of the error.

Not sure if this helps but I had something kinda similar happen with my tax refund (not unemployment). Money showed up then disappeared. Turned out it was some verification issue and they had to manually review my account. Took like 3 weeks but they eventually redeposited the correct amount. Have you checked if maybe the IRS flagged your account for review?? That might explain why nobody has answers.

THIS IS WHY I ALWAYS SCREENSHOT EVERYTHING!!!! When money hits my account I take screenshots immediately showing the deposit, the date, the description, everything. The government and banks are NOTORIOUS for making these "mistakes" and then acting like you're crazy when you call about it. Without proof they'll just keep bouncing you around forever. I lost $1200 last year in a similar situation and because I didn't have proof of the original deposit, I was completely out of luck. Now my rule is screenshot EVERYTHING and send it to myself in email so it's timestamped too.

I worked for a bank for 6 years and here's what likely happened: The IRS sent an ACH credit (deposit) to your account. When they realized it was an error, they sent an ACH reversal request. However, since you had already moved some of the money out, the reversal created an overdraft. What's concerning is that your bank claims there's no record. Banks are required to maintain ACH records for 6 years. Ask specifically for their "ACH transactions report" for your account - this shows different information than your regular statement and includes items that might not show on your regular account history. If they still claim no record exists, file a formal complaint with the Consumer Financial Protection Bureau (CFPB). Banks typically respond much more thoroughly to CFPB complaints because they're required by law to resolve them within 15 days. The complaint process is free and can be done online.

Just wanted to update - I contacted NYSDOL through Claimyr this morning and finally got through to someone who could help! Turns out this is a known issue they're dealing with. There was a system error where stimulus payments meant for people on certain benefit programs were incorrectly sent to NY unemployment recipients. The agent was able to see the exact transaction on their end and is sending me an official explanation letter I can take to my bank. They said several thousand people were affected by this same error.

THIS IS INSANE!!! The government messes up, takes YOUR money, puts you in the negative, charges you fees, and then makes YOU do all the work to fix THEIR mistake??? And people wonder why I don't trust the system! This happens way too often with NY unemployment. Remember last year when they accidentally double-paid thousands of people and then froze their accounts for "fraud investigation" when it was THEIR ERROR?? I was locked out for 6 weeks!

wait so was it actually unemployment money or IRS?? im confused now

UPDATE: You guys were right!! I finally got through to NYSDOL using Claimyr (took about 25 minutes to get an agent) and they confirmed exactly what happened. There was a processing error between the Treasury Department and NYSDOL where some stimulus payments were incorrectly sent through the unemployment system to people who weren't eligible. When the error was caught, they reversed the payments but didn't notify anyone. The agent was super helpful and is sending me a formal letter explaining the error that I can take to my bank. She also gave me a special reference number to provide to the IRS if I need to follow up with them. She said they're working on a mass communication to everyone affected, but that could take weeks. Thank you all for your help! I'm relieved to finally understand what happened, though still annoyed about the overdraft fees. Going to my bank tomorrow with the case info.