Initial IRS Information Regarding Impending ‘Economic Impact Payments’
On March 30, the IRS issued initial information regarding the impending “economic impact payments.” Here is a summary of the information from the IRS and some initial guidance from Nacha:
• Payments will begin in “the next three weeks,” according to the IRS; RDFIs should plan on beginning to receive initial Direct Deposits as early as the week of April 6-10.
• The IRS says the vast majority of people do not need to take any action. The IRS will use 2019 tax return information to calculate the payment amount, and Direct Deposit that payment into the same banking account reflected on the return filed. If a 2019 return has not been filed, then the IRS will use 2018 tax return information.
• Some people will need to take an action to receive payments: People who typically do not file a tax return will need to file a return to receive an economic impact payment; anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 will need to file to receive an economic impact payment.
The U.S. Treasury has said it plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments more quickly by Direct Deposit as opposed to checks in the mail. All financial institutions should consider how to provide or make this information available to their customers opting to do this.
Finally, Nacha urges everyone to be mindful of the potential for fraudsters to take advantage of this national emergency in general, and these economic impact payments in particular. Please visit Nacha’s Current Fraud Threats page for more information, including a section dedicated to coronavirus scams.
Nacha will alert Members to additional relevant information as it becomes available.