News & Tech Tips

IRS Launches Tracking Tools

Kathleen Hargrove on March 16, 2021

As the latest round of stimulus payments have started hitting some bank accounts, The IRS has updated the “Get My Payment” tool on its website with further information on when to expect payments.

 

You can check the status of your payment here.

 

The third round of Economic Impact Payments will be based on a taxpayer’s latest processed tax return from either 2020 or 2019. That includes anyone who used the IRS non-filers tool last year, or submitted a special simplified tax return.

 

For those who received the first two stimulus checks but didn’t receive a payment via direct deposit, they will receive a check or a prepaid debit card. Social Security and other federal beneficiaries will generally receive this third payment the same way as their regular benefits. A payment date for this group is expected to be announced soon.

 

In addition, the “Where’s My Refund” page is also live on the IRS website.

 

You need the following information to track the status of your tax refund:

 

  • Social Security number or Individual Taxpayer Identification Number
  • Filing status (single, married or head of household)
  • Exact refund amount in whole dollars (can be found on your tax return)

 

The tool will show you one of three messages to explain your tax return status:

 

  • Received: The IRS now has your tax return and is working to process it.
  • Approved: The IRS has processed your return and confirmed the amount of your refund, if you’re owed one.
  • Sent: Your refund is now on its way to your bank through direct deposit, or as a paper check to your mailbox.

 

 

For more information or further assistance with your filing, please contact your Whalen advisor.

 

 

SOURCE: IRS

Economic Impact Payments Sent on Prepaid Debit Cards

Kathleen Hargrove on June 3, 2020

As more Economic Impact Payments continue to be sent out, the IRS has notified taxpayers that some payments are being sent by prepaid debit card instead of a paper check.
The debit cards arrive in a plain envelope from “Money Network Cardholder Services.” Nearly 4 million people are being sent their Economic Impact Payment by prepaid debit card. If you have not received your payment yet, be on the lookout and make sure not to mistake this for junk mail.
The determination of which taxpayers received a debit card was made by the Bureau of the Fiscal Service, a part of the Treasury Department that works with the IRS to handle distribution of the payments.
Those who receive their Economic Impact Payment by prepaid debit card can do the following without any fees:
  • Make purchases online and at any retail location where Visa is accepted
  • Get cash from in-network ATMs
  • Transfer funds to their personal bank account
  • Check their card balance online, by mobile app or by phone
This free, prepaid card also provides consumer protections available to traditional bank account owners, including protection against fraud, loss and other errors.
More information can be found on the IRS website here.
 
Our team will continue to monitor this for further developments and will update you with any added information. Feel free to contact your Whalen advisor with any questions.

IRS Explains How Ineligible Taxpayers Should Return Stimulus Payments

Kathleen Hargrove on May 8, 2020

The IRS has posted information on how people who weren’t supposed to receive their economic impact payments for the coronavirus pandemic should return the money.

 

The CARES Act included provisions for sending economic impact payments of at least $1,200 to individuals, and $2,400 to married couples, plus $500 per dependent child.

 

The program, however, has been seen some issues since it was rolled out. The IRS had to rely on information from taxpayers’ 2018 and 2019 tax returns to send the money. In some cases, the IRS sent money to the families of deceased taxpayers or people who live abroad and don’t qualify for the payment. Undocumented and incarcerated taxpayers also aren’t considered to be eligible.

 

A Frequently Asked Questions page has been setup on the IRS website about the economic impact payments, and information has been added about which taxpayers are ineligible and how to return the payments if money was received.

 

If the payment was a paper check, the IRS gave the following instructions:

 

  1. Write “Void” in the endorsement section on the back of the check.

 

  1. Mail the voided Treasury check immediately to the appropriate IRS location listed below.

 

  1. Don’t staple, bend, or paper clip the check.

 

  1. Include a note stating the reason for returning the check.

 

If the payment was a paper check and the taxpayer has cashed it, or if the payment was a direct deposit, the IRS recommended that taxpayers:

 

  1. Submit a personal check, money order, etc., immediately to the appropriate IRS location.

 

  1. Write on the check/money order made payable to “U.S. Treasury” and write 2020EIP, and the taxpayer identification number (Social Security number, or individual taxpayer identification number) of the recipient of the check.

 

  1. Include a brief explanation of the reason for returning the payment.

 

Further information on returning payments and ineligible recipients can be found on the IRS website here. 

 

The IRS has not issued clear penalties for those who do not return these payments. At this time, it appears the IRS is strongly recommending the return of payments, however, it is not suspected they will pursue individuals legally. This has not been confirmed.

We will continue to monitor this for additional updates and keep you informed on any changes. Please contact your Whalen advisor for further questions regarding this announcement.

IRS Launches “Get My Payment” Tool

Kathleen Hargrove on April 16, 2020

You’ve heard all the recent buzz regarding Economic Impact Payments, but are you still wondering when you are going to receive yours?

The IRS has launched its “Get My Payment” tool, which allows taxpayers to check the status of their Economic Impact Payment.

The tool provides information about a taxpayer’s payment status, payment type, and whether the IRS needs more information, such as a bank account and routing number.

To use the tool, taxpayers will need to enter their name, Social Security number, date of birth, and address. If a bank account is not on file, the taxpayer can enter that information after verifying the AGI and refund amount (or amount owed) on his or her most recently filed tax return.

The “Get My Payment” tool can be accessed on the IRS website.

 

Individuals who are not required to file a 2018 or 2019 tax return can also enter their payment information on the IRS website.

Not sure if you are eligible for an Economic Impact Payment? Check out the eligibility requirements here.

As always, feel free to reach out to your Whalen advisor with any questions regarding these payments or anything else.
SOURCES: Thomson Reuters, IRS.gov

Social Security Recipients Will Automatically Receive Economic Impact Payments

Kathleen Hargrove on April 6, 2020

Last week, the Treasury Department and the IRS announced that social security beneficiaries will not need to file a “simple” return to receive an economic impact payment and that the payment will be automatic.

Previously, the IRS had stated that people who did not file a 2018 or 2019 federal income tax return, including individuals who typically are not required to file a return, would need to submit a “simple” tax return to receive the stimulus payment.

The Treasury Department’s most recent press release states that social security beneficiaries who are not typically required to file tax returns will not need to file a “simple” tax return to receive an economic impact payment. Instead the payments will be automatically deposited into their bank accounts.

According to the press release, the IRS will use the information on Form SSA-1099 to distribute $1,200 economic impact payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.

Questions about this announcement or anything else? Contact your Whalen advisor here.

 
SOURCES: Thomson Reuters, U.S. Department of the Treasury

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