San Francisco Tax Preparation / CPA: IRS Reopens Registration Period for Economic Impact Payments for Certain Federal Beneficiaries

Filed in CCH NEWS FEED by on September 9, 2020

The IRS has announced that it will reopen the registration period for federal beneficiaries who did not receive $500 per child payments earlier this year, as it continues to look for ways to look for ways to help people who were unable to provide their information in time to receive Economic Impact Payments (EIPs) for their children. The IRS urged certain federal benefit recipients to use the IRS Non-Filers tool from August 15 to September 30, 2020, to enter information on their qualifying children to receive the supplemental $500 payments. Accordingly, those eligible to provide this information include people with qualifying children who receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits and Veterans Affairs Compensation and Pension (C&P) benefits and did not file a tax return in 2018 or 2019. The IRS anticipated that these payments would be issued by mid-October.

Those who miss the September 30 deadline will need to wait until next year and claim the payment as a credit on their 2020 federal income tax return. Moreover, no further action is required from Social Security, SSI, Department of Veterans Affairs and Railroad Retirement Board beneficiaries who have already used the Non-Filers tool to provide information on children as the IRS will automatically make a payment in October. Additionally, eligible recipients can check the status of their payments using the Get My Payment tool on the IRS website. The IRS reminded people with little or no income and who are not required to file tax returns that they may still be eligible to receive EIPs. Accordingly, people with incomes typically below $24,400 for married couples, and $12,200 for singles, including people experiencing homelessness, must use the Non-Filers’ tool by October 15 to receive their payments this year. More information on EIPs, including updated answers to frequently-asked questions and other resources can be found at https://www.irs.gov/coronavirus#_blank.

Other IRS Announcements

  • Spouse’s past-due child support: As the IRS works towards resolving cases where a portion or all of an individual’s payment was taken and applied to their spouse’s past-due child support, the IRS will automatically issue the portion of the EIP that was applied to the other spouse’s debt.
  • Spouses of deceased taxpayers: EIP procedures were modified to prevent future payments to deceased individuals after review by the Treasury. The cancellation of uncashed checks is part of this process. Some EIPs to spouses of deceased taxpayers were cancelled. The IRS stated that it is actively working on a systemic solution to reissue payments to surviving spouses of deceased taxpayers who were unable to deposit the initial EIPs paid to the deceased and surviving spouse. For EIPs that have been cancelled or returned, the surviving spouse will automatically receive their share of the EIP.

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