Getty Will there be a second round stimulus check? Get the latest updates here.
There is a new deadline for coronavirus stimulus checks. Americans now have until noon Wednesday, May 13, to provide their direct deposit information using the Get My Payment portal on the IRS website. If you do not update your direct deposit information, you will have to wait to receive a paper check to obtain your stimulus payment.
Paper checks are expected to arrive from late May through June.
The IRS website now reads, “Starting later this month, the number of paper checks being delivered to taxpayers will sharply increase. For many taxpayers, the last chance to obtain a direct deposit of their Economic Impact Payment rather than receive a paper check is coming soon. People should visit Get My Payment on IRS.gov by noon Wednesday, May 13, to check on their payment status and, when available, provide their direct deposit information.”
The IRS Says It Has Distributed $217 Billion to 127 Million People
When the CARES Act was passed, the IRS committed to sending payments of $1,200 to qualifying individuals.
On Friday, according to Pymnts, the IRS said that so far it has distributed $217 billion to 127 million taxpayers. By comparison, it had sent out $158 billion to 88 million Americans by April 24.
In a statement, IRS Commissioner Chuck Rettig said, “We are working hard to continue delivering these payments to Americans who need them. The vast majority of payments have been delivered in record time, and millions more are on the way every week.”
Some People Need to Send Their Stimulus Checks Back
Millions have received their stimulus checks, but now the IRS is asking that some people return those payments.
The IRS is asking the following to return their coronavirus stimulus checks:
- Family members of deceased individuals (for the deceased person’s portion)
- Incarcerated individuals
- “Aliens” (non-citizens) who are nonresidents or non-qualifying residents
The fact that they are asking for money to be returned comes as a surprise to recipients and legal experts alike, as the IRS did little to get money back during the Great Recession, according to Money.
When Nina Olson, the former head of internal IRS watchdog Taxpayer Advocate Service, was previously asked about sending back payments, she told Marketwatch, “The CARES Act stimulus bill contained no ‘clawback’ provisions for stimulus checks sent to a dead person, meaning the agency can’t retrieve the money after it’s been handed out. Congress didn’t write around that this year.”
Now, however, they are saying that payments incorrectly sent to individuals who have died, are in jail, or are non-citizens must be sent back. It’s unclear how the IRS will make sure these checks are sent back.
The Tax Foundation’s Garrett Watson tells Money, “I suspect the IRS will encourage people to return payments given incorrectly, but it’s less likely the agency will pursue people legally or through the 2021 tax season. It’s important to note that the IRS FAQs are not considered legal documents or even formal guidance, so while they are helpful in establishing the agency’s position, we’d need more details before knowing whether they’d have a strong case to pursue individuals legally over the payments.”
READ NEXT: COVID-19 Stimulus Checks: Who Has to Return The Money?