Monthly payments of $250 to $300 are a challenge for the agency.
The IRS is under pressure from several fronts that put the agency under pressure: the distribution of the third stimulus check, especially the payment to Social Security beneficiaries and veterans, in addition to the distribution of the child tax credit.
According to the American Recovery Plan (ARP) law, the goal was to send from the middle of the year, but that could take longer than expected, due to the delays and challenges faced by the agency headed by Charles Retting.
Under the pandemic crisis relief rule, families will be eligible for an expansion of the child tax credit, which will provide $3,000 annually for children ages 6 to 17 and $3,600 for children under age 6.
July 1 would be the date that, according to Commissioner Retting, financial aid could begin to be sent.
However, at a congressional hearing he acknowledged the challenges of launching a special portal for recipients to provide their latest information.
A report in The Washigton Post, citing several experts, warns that the IRS is sending signals of possible delays, especially as tax filing season also adds up.
“Tax filing obligations make it extraordinarily difficult for families with the greatest financial need to access government programs,” said Bethany Lilly, director of income policy for the nonprofit group Arc, in a statement provided to Power Up. “Eligibility does not mean access.”
Lilly even warns that there are eight million low-income people who have yet to receive even their first stimulus check.
The Post noted that the IRS commissioner told lawmakers that a “periodic” payment of aid is feasible, not a monthly remittance of $250 or $300, as the case may be.
The extension of the program for 2021 -which already exists at a lower amount- is applicable until December, so people could receive less money than estimated.
The good news is that lawmakers have realized that such a plan is viable if made permanent and would help the economy on several fronts, including ensuring access to food and education for children.
During discussions of the stimulus package, there were proposals to make the plan permanent, but they did not move forward.
“The real hope is that we are learning in real time from the first six months of implementing the stimulus payments to inform what we hope will be a permanent policy that the administration will fight for in the infrastructure package,” a Senate source told the Post.