Economic Impact Payment Info
Latest Updates on Stimulus Payments
Last updated: Jan. 26 2021 3:25 pm
On Jan. 11th the IRS issued a statement outlining steps they have taken in collaboration with the tax industry to expedite the release of Economic Impact Payments to taxpayers. In addition to the millions of Economic Impact Payments that TPG disbursed directly to taxpayers, we have also returned a smaller number of Economic Impact Payments to the IRS including all payments received for taxpayers that requested a cashier's check disbursement in 2020.
- These returned payments will be re-issued by the IRS
- The IRS has indicated these payments will be issued directly from the government later this month
- These payments may be issued by paper check or direct deposit
The Economic Impact Payment (EIP or Stimulus Payments) plans, EIP1 in March of 2020, and EIP2 in December of 2020, were enacted to provide support to millions of Americans suffering from the economic hardships created by the COVID-19 pandemic. The directive from Congress, when they passed the legislation, was for the IRS to issue payment directly to taxpayers.
In April of 2020 the IRS inadvertently sent some of the first EIP payments to TPG instead of directly to the taxpayer as the program intended. TPG notified the IRS and was directed to return payments immediately as this was the most efficient way to get payments to taxpayers. Based on IRS advice TPG established processes and protocols to make the return to IRS process happen as quickly as possible and the overall results were positive for the impacted taxpayers.
The second round of stimulus payments (EIP2) issued by the IRS also included substantially more payments sent in error to TPG than we received during EIP1. We prepared to follow the established protocol that had been successful with EIP1 and immediately return these payments to the IRS.
Unlike the first stimulus, the IRS indicated that returned funds from EIP2 will not be reissued to taxpayers by direct deposit or cashier checks, but instead require taxpayers to apply for a tax refund credit through the ordinary tax filing process. Following the industry’s established process of returning funds to the IRS would mean that millions of impacted taxpayers would not receive their EIP2 payment with their refund until the last week of February due to legislative restrictions on the release of refunds.
With unprecedented taxpayer need for stimulus payments, it was increasingly clear that it’s in the best interest of taxpayers for TPG to bypass the IRS and the industry’s established process, and issue stimulus payments directly to as many taxpayers as we can successfully identify. Recent IRS statements support this decision:
“If a company is able to identify the Ultimate Bank Account (UBA), they can move the money to that account and not return it BFS/IRS. This is a shift from the information in the prior new releases that “the financial institution must return the payment to the IRS.” Therefore, organizations planning to redirect the payment to a known UBA should stop rejecting these payments to the BFS/IRS. We are aware there are organizations and tax practitioners that are already migrating the EIP2 to the correct UBA.”
“As of this point in time, the IRS has no plans to reissue any EIP2 payments. If a taxpayer that does not receive the amount of EIP (EIP1 or EIP2) they are eligible, must request a Recovery Rebate Credit on their 2020 tax return.”
Fortunately, TPG was able to pivot quickly and we are now issuing payments directly to taxpayers who have an established bank account (UBA) on file with us. This means that taxpayers who chose to have their 2020 tax refund disbursed by direct deposit to an existing bank account or funded to a Green Dot card product (including the TurboCard, Walmart MoneyCard), will have their EIP2 payment directed to that account as early as Monday January 11th. Clients who received their disbursement on a cashier’s check can claim their EIP2 on their 2020 return using the Rebate Recovery Credit as directed by the IRS. We are confident that this is the best solution for getting money into the hands of so many American taxpayers who depend on these funds.
The IRS has announced that the second round Economic Impact Payments(EIP) are being delivered directly to qualified taxpayers, and the IRS has indicated payments will not be delivered to Refund Transfer banks including Santa Barbara TPG. TPG will not play a role in facilitating these payments. The eligibility amount and status of your stimulus payment can be found at IRS.gov/coronavirus.
If the IRS indicates funds were sent to TPG those funds will be rejected back to the IRS. According to the IRS website, "By law, the financial institution must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active."
The IRS may indicate funds were deposited to an account ending in the last four digits of your Social Security number. For your protection any account that was established at TPG to facilitate processing of your tax refund was closed when you received your original tax refund, and that account no longer exists.
Unfortunately, TPG does not have any visibility into this information, therefore our agents cannot answer any questions regarding these payments.
CARES Act update
On March 27, 2020 the President signed the CARES Act providing Economic Impact Payments (stimulus payments) to individuals, businesses, the health care industry, and state & local governments.
This page will be updated as more information is available. Visit the IRS Coronavirus Tax Relief page or the IRS Economic Impact Payment Information page for the latest information.The IRS is updating the FAQs on these pages regularly.
Answers to Common Questions
The IRS will issue direct deposits to taxpayers that requested a direct deposit disbursement or applied for a new debit card when they prepared their own return online. An IRS-issued check will be mailed to taxpayers that requested a check printed from their tax professional's office, Walmart Direct2Cash or a Walmart MoneyCard issued by their tax professional.
If a payment is returned to the IRS (Ex. bank account is closed), the IRS will mail a check to the taxpayer.
In the rare event that payments are inadvertently sent to TPG, a plan is in place to help identify and expedite the return of these payments immediately to the IRS so that the IRS can reissue payments directly to affected taxpayers as soon as possible.
Visit the IRS Get My Payment FAQs page (shown below) for more details.
If we are unable to identify the payment as an Economic Impact Payment, the deposit will be processed as a federal refund, with all associated fees withheld from the deposit amount.
We understand that taxpayers need their refund or EIP more than ever, so we are committed to getting money to taxpayers as quickly and easily as possible.
There is nothing to do if you filed a tax return for 2018 or 2019 or for Social Security and Railroad Retirement recipients who are not typically required to file a tax return. If you have not filed your 2018 or 2019 return the IRS recommends that you file back taxes for 2018. If you are someone that doesn't normally need to file visit the IRS Non-Filers Payment Info page.
Social Security beneficiaries who are not typically required to file tax returns do not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.
The IRS and Treasury announced on Dec. 29 that the second round of EIP payments are now being delivered.
The IRS has begun issuing payments to taxpayers with direct deposits, and the lowest income (AGI) taxpayers first. The IRS has indicated most payments were issued by April 15. They will issue payments weekly until payments are complete. Visit the IRS Get My Payment page for more information.
Taxpayers who filed in 2018 or 2019 will receive payments automatically from the IRS. The IRS indicated payments will also go in the near future to those receiving Social Security retirement or disability benefits and Railroad Retirement benefits. On April 20th the IRS encouraged this group of taxpayers with eligible dependents to act by Wednesday in order to receive $500 per eligible child. Visit the IRS website for details.
Be on the alert for Economic Impact Payment scams
Scammers and identity thieves are already taking the opportunity to prey upon taxpayers with phone calls, text messages and emails. Here are some answers to common questions related to fraud. Victims or targets of Economic Impact Payment scams should report it immediately to the Federal Trade Commission at www.ftc.gov/complaint.
No, the IRS and other government agencies will never call asking for your Social Security Number (SSN) or banking information. Do not provide your SSN or bank account information to anyone calling you and claiming to be from the IRS or another government agency.
No, please beware of phishing schemes from identity thieves claiming to be the IRS or another government agency. Do not click on a link or email if you do not recognize who it is from. The IRS will never text or email you asking to provide your bank account information or verify your bank account information.
No, please beware of phishing schemes from identity thieves claiming to be the IRS or another government agency. Taxpayers that filed their 2019 tax return are not required to sign up or pay a fee in order to receive an Economic Impact Payment. Please visit the IRS website for more details.
Taxpayers are not required to complete a form. The IRS and Treasury Department provided a new web tool for people that don't normally file a tax return. These non-filers can use this IRS tool to register for Economic Impact Payments.
This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don't receive Social Security retirement or disability benefits or Railroad Retirement benefits. It is also for those with lower income, veterans beneficiaries, SSI recipients, students, etc. Visit the IRS website for more details.
The IRS is required to mail a written notice to taxpayers no later than 15 days after distributing an Economic Impact Payment. This notice to the taxpayer will indicate the payment amount, whether the payment was mailed or direct deposited, and a phone number to call if the taxpayer did not receive the payment. The payment should be received before any communication from the IRS is received by mail.