The IRS is now beginning to distribute the third round of stimulus checks, worth up to $ 1,400 per eligible adult and child. But the timing of receiving a check may depend in part on the bank’s policies, with some JPMorgan Chase and Wells Fargo customers expressing frustration after banks said coronavirus relief payments will not be available until March 17.
The reason, banks say, is a problem beyond their control. Although the IRS started issuing payments over the weekend, the official payment date is March 17, Wells Fargo and JP Morgan Chase told CBS MoneyWatch. Wells Fargo added that he “is not holding the funds” and that he will deposit the money into accounts as soon as possible.
However, other banks are crediting the funds to customers’ accounts immediately. Current, a start-up bank based in New York, is using its own balance sheet to credit the funds, rather than waiting for liquidation. Some of his clients were granted access to their stimulus funds on March 12, the day after President Joe Biden signed the $ 1.9 trillion bill.
The organization that manages the wire transfers said on Monday that the IRS had set the deal date for March 17 and added that “there is no mystery” about where the money is. “It is still with the government,” Nacha, the organization that governs the ACH Network, told CBS MoneyWatch in a statement.
“This is the date on which the IRS will provide the funds to banks and credit unions to make them available to beneficiaries at a later date,” said Nacha in the statement. “The Nacha Rules require banks and credit unions to make funds available to account holders by 9:00 am local time on the settlement date; again, in this case, March 17th.”
He added: “The IRS has chosen the date of March 17, which is the date on which the IRS intends for liquidation to occur.” He added that payments must be cleared in the accounts at 8:30 am Eastern Time on March 17.
“This is literally the time when the money will be transferred from the government to the settlement accounts of banks and credit unions in the Federal Reserve,” the group added.
Threatening to close accounts
Some customers have threatened to leave their banks on social media, citing the delay in accessing funds as the reason.
But Chase and Wells Fargo said the funds will not be released until Wednesday. Wells Fargo added that he would waive any overdraft fees that occur as a result of the problem.
“Our goal is to support our customers and we will proactively reverse Wells Fargo’s outstanding fees, including overdraft fees, for those who have a qualifying negative daily balance when their stimulus payment is deposited,” the bank said in an extract by and -mail.
Wells Fargo added: “As we did for previous stimulus payments, we will proactively contact customers who have a qualified negative final daily balance on the day before the deposit to inform them of the specific steps we have taken, which includes providing deferrals of temporary refund “
IRS: days to weeks
Most Americans will receive one of the $ 1,400 checks, but not everyone will receive a check immediately. The IRS will send checks in batches over the next few days and weeks, although it did not specify that it would be the first to receive the checks.
People who filed their 2020 or 2019 tax returns and have a bank account registered with the tax agency are more likely to receive their stimulus checks quickly through direct deposit, based on previous payment implementations. That’s because the IRS prioritizes quick distribution of stimulus money to those it knows it can reach – and it’s a huge effort, given that the tax agency has $ 422 billion in funds to distribute to more than 100 million taxpayers.
Most taxpayers do not need to take any action to receive the checks, Treasury and IRS officials said on Friday. People can also check the “Get My Payment” website at IRS.gov, which the tax agency reopened for the third round of stimulus checks.