In addition to 90 million direct deposit payments, the IRS was credited with sending out 150,000 $1,400 stimulus checks on Wednesday.
The Internal Revenue Service (IRS) said in a press release Wednesday that the Treasury Department has already mailed approximately 150,000 $1,400 stimulus checks worth approximately $442 million.
With this action, the agency advanced the processing of the paper checks, which were expected to be processed after the direct deposit stage was completed.
However, the largest number of checks were processed through electronic transfers, with 90 million sent to bank accounts.
“While most of the payments were delivered by direct deposit, which reach individual taxpayers more quickly than paper checks, Treasury mailed approximately 150,000 checks worth approximately $442 million,” the office noted.
The first payment processing was not limited to taxpayers who filed tax returns, it also reached beneficiaries who are not required to file their tax information due to low income or “non-filers.”
“The first mailing of payments was primarily to eligible taxpayers who provided direct deposit information on their 2019 or 2020 returns, including individuals who do not normally file a return but successfully used the Non-Filers tool on IRS.gov last year,” the entity detailed. “In total, this first round included approximately 90 million payments, which are valued at more than $242 billion,” the IRS added.
Yesterday’s announcement coincides with the official release of the first direct deposits as of 8:30 a.m. Prior to that amount, many recipients saw the money in their accounts as “pending” and “provisional.”
This Wednesday, March 17, was the date the IRS chose as the official payment date, or the date on which the IRS will provide the funds to the banks or credit unions to make them available to the recipients.”
This generated discomfort among the recipients, some of whom saw the funds reflected since Friday, but could not dispose of them.
On this, the IRS merely stated, “These payments began processing on Friday, March 12. Some Americans saw direct deposit payments as pending or interim payments in their accounts prior to today’s (Wednesday’s) official payment date.”
“Additional payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card,” the agency added.
Yesterday, the IRS also reported that it extended the tax filing season from April 15 to May 17, 2021 due to the aftermath of the pandemic.
“This continues to be a difficult time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic while working through important tax administration responsibilities,” said Chuck Rettig, IRS commissioner.
“Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the fastest way to get refunds and may help some taxpayers receive any remaining stimulus payments due to them faster,” the official advised.