Stimulus Payments: 800,000 Taxpayers Might not Become Recipients, IRS Says

The IRS revealed that the agency recently sent 800,000 notices to taxpayers who have not activated their stimulus payments debit cards.

Staffers of the IRS gave updates on the agency's operation at a recent online meeting for tax experts in the New England region. The IRS also talked about the COVID-19 Economic Impact Payments or the IRS stimulus checks issued to the recipients. The IRS staffers explained that these taxpayers probably accidentally threw the email about the debit card, thinking that it was junk.

According to Forbes, the meetings were helpful not just for the substance they gave but also for the type of human face they put on the overworked tax experts at the IRS's real-world side efforts.

The discussion was also addressed to get feedback from the tax professionals on resolving issues with federal tax procedures, practices, and policies. The IRS presentation explains that the agency sent over 160 million Economic Impact Payments as of mid-August. The agency admitted that a small percentage of payments had presented problems for the U.S Treasury and taxpayers.

In May, an IRS statement reported that almost four million people are being sent their stimulus payments through prepaid debit cards instead of paper checks. However, 20% of the cards remain inactivated and unused. These are the 800,000 taxpayers that the IRS noticed via email.

However, there are inquiries about card-reissue that the IRS wants to address also. For the instructions of reissuing cards, taxpayers must go to EIPcard.com FAQs to get the full details of what they should do.

A relevant FAQ states, "If your Card is discarded or destroyed, you must call Customer Service at 1.800.240.8100 (TTY: 1.800.241.9100) immediately and select the 'Lost/Stolen' option. Your Card will be deactivated to avoid anyone from using it, and a replacement Card will be ordered. The first reissued Card will be free, and then a $7.50 fee will be applied for the additional reissued Card. Please refer to the material in your Welcome Packet or see your Cardholder Agreement online at EIPCard.com for more information."

The IRS meeting also tackled the missing payments and incorrect payments for taxpayers who have not filed a 2018 or 2019 tax return and didn't receive Social Security, Department of Veteran Affairs, or Railroad Retirement benefits through direct deposit. The agency reiterated that taxpayers have until October 15 to use the non-filer tool on the IRS website to get stimulus payment.

Meanwhile, on August 15, the IRS reopened the registration period for the federal benefit recipients of SSI, RRB, VA, or Social Security. They have not received a stimulus payment of $500 per qualified child.

"From this point forward, I think practitioners will only be dealing with clients who have yet to receive their stimulus payment," the IRS presenter said. For taxpayers who did not receive a stimulus check but qualified for the payment. The IRS told the tax-return preparers that their clients can still claim the payment with their 2020 tax return as a tax credit when they file the return in 2021.

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