IRS Changes Course Again on EIPs; Will Reissue Misdirected Payments
January 12, 2021
The Internal Revenue Service yesterday announced that—in a reversal of previous guidance—it will reissue payments for taxpayers who did not initially receive their second-round economic impact payments due to a processing error.
“This impacts taxpayers whose tax preparation providers followed initial IRS guidance and are now waiting for the IRS to re-process payments related to these accounts,” the IRS explained in a notice. “Payments will be issued directly from the government later this month (our industry partners are not in possession of these funds), within weeks of the law being enacted.”
The IRS noted that these payments may either be issued as paper checks or via an ACH direct deposit, and that taxpayers do not need to take action in order to receive their reissued payment. “The IRS regrets the inconvenience caused by this situation.” Read the statement.