The IRS said it is sending 8 million prepaid Visa debit cards loaded with a federal stimulus payment, advising people to keep an eye on the envelopes if the funds are not deposited directly into their bank accounts.
The tax agency also said it changed the envelopes to make it more evident that they include the $ 600 payment, which Congress approved in late December as a way to offer millions of Americans additional financial relief as the economy struggles to recover from the coronavirus pandemic.
Last spring, some people discarded their prepaid debit cards loaded with the first round of stimulus money because the envelopes were not clearly marked as coming from the IRS or the Treasury Department. The IRS said the last batch of debit cards will be shipped in a white envelope with a label that “prominently displays” the Treasury seal.
“The IRS and the Treasury ask qualified individuals who do not receive a direct deposit to observe their correspondence carefully during this period,” said the IRS in a statement.
The agency began delivering the second round of stimulus checks to millions of bank accounts this week, providing $ 600 for each eligible adult and child. Because the IRS does not have bank account information for everyone who is eligible for payments, it also sends paper checks, as well as prepaid debit cards, to millions of families.
The IRS said people should not assume that they will receive the stimulus payment sent by mail using the same method they received in the spring, when the Coronavirus Aid, Aid and Economic Security Act (CARES) provided $ 1,200 for each eligible adult and $ 500 per child.
“Taxpayers should note that the form of payment for the second shipment [stimulus payment] may be different from the first one sent [payment]”said the IRS in a statement.” Some people who received a paper check last time can receive a prepaid debit card this time, and some people who received a prepaid debit card last time can receive a paper check. “
Faster delivery of funds
The IRS hurried to send the latest checks after stimulus payments were sanctioned on December 27 by President Donald Trump. In the initial round of payments authorized last year under CARES, it took weeks and sometimes months to distribute payments to more than 160 million households.
The money came out faster this time, with checks deposited directly into millions of bank accounts on January 4 – just over a week after Trump’s signature. But this comes with some errors, with about 13 million checks reported sent to closed or inactive bank accounts.
People whose checks have been sent to closed or inactive accounts may have to wait weeks or months to receive their second stimulus checks. Financial institutions by law must return checks sent to closed or inactive accounts, and the IRS said that recipients affected by this error may have to wait to file their 2020 taxes, when they can claim payment of the stimulus as a tax reduction.
The IRS usually starts accepting tax returns from the previous year in late January and starts processing them in February, which means waiting at least several weeks for these people to receive their stimulus checks through their refund. taxes.