By Aman Jain. Originally published at ValueWalk.
The IRS recently gave an update on the stimulus payments issued to the Americans under the CARES Act. In its update on the EIP payments, the agency made one remarkable revelation about the coronavirus stimulus checks sent in the form of debit cards.
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Coronavirus stimulus checks: update on EIP card
According to the IRS, it sent about 800,000 notices to taxpayers who haven’t yet activated their debit cards. This could mean that 800,000 taxpayers accidentally threw out their debit card, thinking it to be junk mail.
When the IRS started issuing the debit cards, there were many instances of people throwing away their EIP card after mistaking it as junk mail.
In May, the agency said that about 4 million Americans would receive their coronavirus stimulus payments in the form of a debit card rather than paper checks. This means about 20% of the cards that the IRS sent remain inactivated and unused.
The IRS has already issued instructions on what to do if you lost or destroyed your card. It is directing such users to the FAQs at EIPcard.com for any queries they may have about the payment. The FAQs advise them to call Customer Service at 1-800-240-8100 and select the “Lost/Stolen” option.
Once a user reports their discarded or stolen card, the card issued to them is deactivated to prevent anyone else from using it. The user will then be reissued a new card free of charge. However, for every subsequent reissue of the card, a fee of $7.50 will be applied.
“Please refer to the material in your Welcome Packet or see your Cardholder Agreement online at EIPCard.com for more information,” the FAQs say.
What about other payment issues?
The IRS also informed Americans that as of mid-August, it has sent more than 160 million EIP payments or coronavirus stimulus checks. The agency also admitted that there were issues with some of the payments it sent.
The IRS also talked about EIP payment issues for those who did not file a 2018 or 2019 tax return and do not get any federal social benefit, such as Social Security, Railroad Retirement, or Department of Veteran Affairs benefits. Such users have until Oct. 15 to give their information to the IRS using the non-filer tool and receive their stimulus payment.
The IRS also talked about people who qualify but did not get a stimulus check. According to the agency, such people need to claim the payment on their 2020 tax return as a tax credit.
The agency also said all its campuses reopened on July 13. However, the coronavirus outbreak in some regions has led to temporary closures of the campuses. The agency also stated that it hasn’t been able to fully staff its campuses due to social distancing measures.
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