IRS Working Fast to Get $600 Direct Payments Out the Door

Jan. 6, 2021, 8:20 PM

The IRS has delivered over 100 million emergency relief payments by direct deposit, according to agency statistics provided to the House Ways and Means Committee.

The payments of up to $600 per person, structured as an advanced tax credit for 2020, were authorized in the massive government funding and pandemic relief law signed in late December.

  • The IRS has scheduled an additional 34 million payments to be delivered by paper check or prepaid debit card, according to data provided to the House tax-writing panel.
  • The agency reported that is has scheduled a total of 147 million payments, totaling $142 billion. The IRS on Tuesday acknowledged that due to the speed at which the money needed to be dispersed, some payments may have been sent to an inactive or closed bank account.
  • Eligible taxpayers who don’t receive money directly from the IRS will have the opportunity to claim the payment on their 2020 tax returns.

—With assistance from Allyson Versprille.

To contact the reporter on this story: Colin Wilhelm in Washington at cwilhelm@bloombergtax.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Vandana Mathur at vmathur@bloombergtax.com

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