Recent Tax Updates

Additional Information on the 2nd Economic Impact (Stimulus) Payment

The IRS has released additional information about how the 2nd economic impact payments.

Starting on Monday, January 4 individuals can check the status of their second payment by using the Get My Payment tool on the IRS website.

Here are additional details on the distribution of the payments:

Individual did not receive their 2nd payment or it is less than they expected

The second payments are in the process of being distributed from now until the middle of January.

If the IRS had the individual’s direct deposit information on file the second payment will be direct deposited to their bank account. Because of the speed at which the IRS issued the second round of payments, some payments may have been sent to an account that may be closed or is no longer active. If this occurred the financial institution must return the payment to the IRS. While the IRS is exploring options to correct these payments, if the taxpayer has not received their full payment by the time they file their 2020 federal tax return, they may claim the Recovery Rebate credit on their return.

If the IRS did not have the individual’s direct deposit information on file, a paper check will be mailed to them at the address that was on their 2019 federal return.

For individuals who received a partial 2nd payment, they can receive any remaining amount due to them by claiming the Recovery Rebate Credit on their 2020 federal return.

Changing bank account of mailing information

For the second payment, the IRS cannot change the payment information, which includes the bank account or address information.

For more details see IRS News Release IR-2021-01 (Economic Impact Payments on their way, visit IRS.gov instead of calling).

As more questions arise about the 2nd economic impact payment the IRS will be posting more information on the Questions and Answers about the 2nd Economic Impact Payment page on the IRS website.

Mark Castro, CPA

Mark Castro, CPA

Mark has been with CrossLink Professional Tax Solutions (CPTS) since 2008, but has been in the tax industry since 1990. As the government/tax industry liaison for CPTS, Mark has been very active in working with the IRS, States, and other tax industry members to help improve communications, promote standardization, and simplification of eFile systems. Mark has also been active with industry associations as a board member of the National Association of Computerized Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA) for many years. These two associations work with the IRS and States to help solve key eFile and electronic tax system issues and work to improve the operations of the State and IRS eFile systems.

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