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Senators Urge Prompt IRS Stimulus Delivery for All Taxpayers

Posted on Apr. 20, 2020

Two Senate Democrats want the IRS to ensure that Americans without direct deposit capabilities can still receive coronavirus stimulus payments on time.

Massachusetts Sens. Edward J. Markey and Elizabeth Warren, citing recent news reports, are concerned that taxpayers who don’t provide direct deposit information to the IRS may not receive the payments until August or September.

“We encourage you to do everything in your power to address this problem immediately and ensure that taxpayers quickly receive their stimulus checks, regardless of banking status,” Markey and Warren told Treasury Secretary Steven Mnuchin in an April 13 letter.

Although modest, the payments, authorized by the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136), “are intended to be a lifeline for millions of American families,” especially to the recently unemployed, the senators said. The payments could amount to $1,200 per individual and $500 per child.

Markey and Warren said the IRS was right to allow taxpayers to update their direct deposit information online, which could speed stimulus rebates, but that decision won’t help people lacking bank accounts capable of direct deposit. Those taxpayers may have to wait longer for their stimulus payments because the IRS won’t start issuing paper checks until the week of May 4, they explained, citing news reports.

The senators added that a delay could compound problems with any future stimulus package Congress might consider. The worsening pandemic and ensuing economic problems show that Americans probably will need more help from the federal government, they said.

“We strongly believe that these payments alone are not sufficient, and Congress will need to provide additional economic relief to help struggling Americans get by,” Markey and Warren concluded. “But right now we must ensure Americans get access to these promised payments as quickly as possible.”

The American Bar Association Section of Taxation suggested that the IRS provide taxpayers without bank accounts stimulus payments on no-fee debit cards.

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