Stimulus Check Update – Information for Non-Filers
Things are moving fast at the IRS, especially in the wake of the CARES Act signed into law last Friday. As the agency scrambles to put the mechanisms in place that will deliver the economic impact payments to Americans, new procedural announcements are hitting the airwaves at an accelerated pace.
In its most recent informational release on the impact payments, the rules for those who may not be on record with the agency to receive payments electronically have been clarified. As explained in IRS Bulletin IR-2020-61, “People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment.”
In other words, those with income levels that did not meet the threshold for filing tax returns in 2018 and/or 2019, those who filed without providing online banking information, as well as some veterans and some individuals with disabilities, will still need to register their banking information with the IRS in order to receive online payments.
If you happen to be in this category, don’t worry. The IRS has indicated they’ll be issuing directions on how to complete and file a simple return conveying their filing status, number of dependents, and direct deposit banking information to enable direct online payments. Also, they’ve indicated that they will soon deploy a “web-based portal” for people to submit the information needed for online payments.
Confirming previous news accounts, the IRS reports that the vast majority of payment recipients will not need to take any specific action. For these folks, the information in their 2019 income tax returns will be used. If a 2019 return has not yet been filed, they are urging folks to file as quickly as possible; otherwise, the data on their 2018 return will be used for payments.
AMAC will continue to stay abreast of this issue as instructions are released via the IRS.gov/Coronavirus website.