CARES Act

Oct 10, 2020 | News & Insights, Uncategorized

In response to the global COVID-19 pandemic that has ravaged our country in 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Coronavirus Relief Fund (Fund) and appropriated $150 billion to the Fund.

As part of the CARES Act, the IRS has issued Economic Impact Payments (EIPs) to US Citizens. While millions of Americans have received their payments already, there are many still who have not yet received their EIPs. In this article, we discuss the most common reasons why taxpayers have not yet received their EIPs, and the actions that they will need to take to ensure receipt.

Reason 1:

You did not file a 2018 or 2019 Tax Return. The IRS retrieves taxpayer information from the 2018 and 2019 Tax Returns. If you did not file a return for either year, then the IRS cannot identify whether you qualify for the payment, or your contact information to issue an EIP. If you did not file, you need to first decide if you are required to file a return for each year. If you need help deciding whether you are required to file a return, you can complete the short interview on the following IRS website: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return. If you are unsure of the amount of income that you had in 2018 and 2019, you can request copies of your IRS Wage and Income Transcripts online or by mail. You can obtain your transcripts from the IRS website: https://www.irs.gov/individuals/get-transcript. If you are required to file the return, we recommend that you file as soon as possible. Once the IRS receives your tax return(s), they will issue the EIP. If you are not required to file returns for either year, then you must submit your information to the IRS on the following website: https://www.freefilefillableforms.com/#/fd/EconomicImpactPayment. Once you submit your information, the IRS will issue the EIP.

Reason 2:

The IRS has incorrect mailing information or banking information on file. If your direct deposit information has changed since you last filed a tax return, then the IRS will mail you the EIP after their initial direct deposit attempt is rejected. If the address on your last filed return is still accurate, you do not need to take any additional action. If the address on your last filed return is not accurate, then you will need to update your information with the IRS records. Instructions for updating your address with the IRS can be found on the following website: https://www.irs.gov/faqs/irs-procedures/address-changes. Alternatively, you can update your address on your 2020 Tax Return.

The IRS will be mailing EIPs for the remainder of the 2020 tax year. If you do not receive an EIP by the time you file your 2020 tax return, you can claim the payment as a credit on your 2020 return.

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