If you are still expecting to receive stimulus payments from the IRS in the form of a paper check, there may be a surprise coming in their mailbox soon.
The U.S. Treasury Department has announced that the IRS will begin sending out stimulus payments on prepaid debit cards instead of mailing paper checks. With these so-called “Economic Impact Payments” (EIP) cards, you can make purchases, get cash from in-network ATMs, and transfer funds to their personal bank account without incurring any fees.
The IRS began distributing economic stimulus payments in April via direct deposit to taxpayers who had up-to-date information on file. It followed up with payments by paper check starting in mid-May. However, the agency estimated it might take as long as four to five months to mail out the millions of remaining checks. Now it says that sending four million prepaid debit cards will cut down on the time.
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This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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