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New IRS programs to overcome stimulus delays

Millions of taxpayers have already received the full amount of their stimulus. However, a significant number of people who are eligible for stimulus are frustrated because they have seen nothing or only part of the amount they had expected to receive.

It has been four months since the stimulus checks began and many people are wondering when they will receive their money. Some of the stimulus has been held up by glitches, programming errors and math errors on some tax returns. 

Reasons for missed stimulus also include families with a spouse who owes back-due child support and victims of identity theft. 

Hundreds of thousands of lower income families didn’t receive an extra $500 for qualifying children ages 16 and younger due to an IRS tool’s programming error in April and early May. Fortunately, some of that money finally began arriving in the mail in early August. 

The Taxpayer Advocate Service is working with the IRS to help people receive payments who have had delays.

In a major reversal, the IRS now says many parents who missed a deadline to request the $500 stimulus payments for their children can still use the non-filers tool to get their money this year.

The IRS is taking new steps to help people who didn’t receive $500 for each child. It will reopen the registration period for people with children who didn’t receive money for each child under the age of 17.

The IRS is urging people to use the IRS.gov Non-Filers tool starting August 15 through September to enter information on their qualifying children if they didn’t receive the $500 per child earlier this year. 

Anyone who has used the Non-Filers tool after May 5 does not need to take further action. The IRS will automatically make a payment in October.

However, people who received Social Security, SSI, RRB or VA benefits and have not used the Non-Filers tool to provide information about their child, should register online by September 30 using the Non-Filers: Enter Payment Info Here tool which is available on the IRS website.

Anyone who misses the Sept. 30 deadline will need to wait until next year and claim it as a credit on their 2020 federal income tax return.

Other Non-Filers can still get a payment, but they must act by October 15 to receive their payment this year.

Anyone who misses the October deadline will need to wait until next year and claim it as a credit on their 2020 federal income tax return.

The IRS is working to resolve cases where a portion or all of an individual’s payment was taken and applied to their spouse’s past-due child support. People in this situation do not need to take any action.

The IRS is also 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.

David Zubler is a tax accountant and Enrolled Agent representing clients before the IRS with over 25 years of tax experience. He is the author of four tax books and is the founder and president of Your Tax Care. The company provides business and tax education to the public at its website, YourTaxCare.com. David can also be contacted by email at zublerdavid@gmail.com