To process money electronically to bank accounts, the IRS uses three sources of information. The first beneficiaries to receive the $1,200 stimulus check under CARES were Americans with direct deposit.
Of the 159 million economic impact payments processed by the Internal Revenue Service (IRS) as part of the first round, 120 million were deposited into recipients’ bank accounts.
While 35 million received the money by paper check and 4 million payments were made in the form of a prepaid debit card.
Three data sources
The IRS uses three sources of information to process money electronically into bank accounts.
The first is the taxpayer’s information on their 2018 or 2019 tax returns in case the person requested on the return that the refund be sent by direct deposit.
Two other tools enabled this year after the stimulus check was approved by Congress may also require, in some cases, that the money be processed through direct deposit.
“Get My Payment and Non-filers
One of these applications is “Get My Payment” which is a service that allows the user to track the status of the stimulus payment. The other “Non-Filers” application allows low-income recipients who are not required to file a tax return to claim the payment and request a direct deposit from the IRS at the same time. Both can be found on the IRS or IRS.gov website. However, only recent Non-Filers have the option to request direct deposit.
It should be noted that those who have already been paid by means other than direct deposit have no current possibility of requiring a change in the form of payment for a second check.
Those who still have a chance are the people to whom the agency has not sent the money.
The expectation is that, if a second round is approved, the money will reach more people faster considering the millions of recipients who have used the Non-filers tool in recent months and may have requested the payment be sent to their bank account. The IRS estimates the figure at 8 million.
However, it will all depend on the guidelines that Congress sets as part of a second bill for new direct payments to individuals and families.
The general recommendation of the IRS is that Americans who do not have a bank account should open one so that, if a second round of checks is approved, they will already have one step ahead.
Time is running out! One Week Left to Claim Late Stimulus Check from IRS
If you do not complete the paperwork by November 21, you will have to wait until the next tax season to claim payment. Stimulus recipients who have not received their checks have about a week to complete the online application through the “Non-filers” service from the IRS website.
On Oct. 5, the agency said it was extending the claim date for the so-called “Economic Impact Payments” until Nov. 21 to give people more time to complete the application online and claim the funds.
Most of the creditors of checks owed are low-income Americans who are not required to file taxes. This population includes the unemployed, the homeless, college students, and recipients of federal Social Security retirement or disability programs (SSDI), Supplemental Security Income (SSI), the Railroad Retirement program, and Veterans Affairs Compensation and Pension (C&P).
“We took this step to give those who have not yet been paid more time to register for their money, including low-income and marginalized communities,” said IRS Commissioner Chuck Rettig.
“The IRS is deeply involved in processing and scheduling that overlaps with tax seasons. Any further extension beyond November would negatively affect our work in the 2020 and 2021 tax filing seasons. The Non-Filers website has been available since the spring and millions of Americans have used it successfully,” the official added.
In addition to creating the Non-Filers tool to try to reach these beneficiaries, the IRS sent out letters to some 9 million people who may be eligible for payment.
The agency also spearheaded a massive outreach effort through networks and in collaboration with partners within and outside the tax industry on November 10.
During the so-called “National Economic Impact Payment Registration Day,” the IRS intensified its outreach campaign to try to locate the millions of Americans who still don’t receive the check under the CARES Act passed in March in Congress.
In addition, almost daily, the IRS has been sharing stimulus check material from its website and on its social networks in 35 languages, including Spanish. The material is not only directed to the media, but to the general public. The content provides guidance on the use of Non-filers and other IRS-enabled tools related to the stimulus check, as well as updates on economic impact payments.
If the payment is not claimed by 3 p.m. on Nov. 21, potential recipients must apply for the money during the next tax season.