The IRS is now beginning to distribute the third round of incentive checks, worth up to $ 1,400 per eligible adult and child. But the timing of obtaining a check may depend in part on a bank’s policies, with some JPMorgan Chase and Wells Fargo customers expressing frustration after banks said coronavirus aid payments would not be available until March 17.
The reason, the banks say, is due to a problem beyond their control. Although the IRS began issuing payments over the weekend, the official payment date is not until March 17, Wells Fargo and JPMorgan Chase told CBS MoneyWatch. Wells Fargo added that he “does not have the funds” and that he will deposit the money in accounts as soon as possible.
However, other banks lend funds to customers’ accounts immediately. Current, a New York-based banking startup, uses its own balance sheet to credit funds rather than wait for settlement. Some of his clients received access to the stimulus funds on March 12, a day after President Joe Biden signed the $ 1.9 trillion law.
The organization that manages the electronic transfers said Monday that the IRS has set a settlement date for March 17 and added that there is “no mystery” about where the money is. “It’s still up to the government,” Nacha, the organization that governs the ACH network, told CBS MoneyWatch in a statement.
“This is the date when the IRS will provide the funds to banks and credit unions to make them available to beneficiaries,” Nacha said in the statement. “Nacha rules require banks and credit unions to make the funds available to account holders by 9:00 a.m. local time on the settlement date; again, in this case, March 17.”
He added: “The IRS has chosen March 17, which is the date on which the IRS intends to settle.” He added that payments should be cleared in accounts at 8:30 AM ET on March 17.
“This is literally the time when the money will be transferred from the government to the settlement accounts of banks and credit unions in the Federal Reserve,” the group added.
Threatening to close accounts
Some customers have threatened to leave their banks on social networks, motivating the delay in accessing the funds as a reason.
But Chase and Wells Fargo said the funds would not be removed until Wednesday. Wells Fargo added that it will waive any overdraft fees that arise as a result of the problem.
“Our goal is to support our customers and we will proactively reverse outstanding Wells Fargo fees, including overdraft fees, for those with a negative final qualifying daily balance when the incentive payment is submitted,” the bank said in a statement. sent by e-mail.
Wells Fargo added: “As we did for previous incentive payments, we will proactively contact those customers who have a negative final qualifying daily balance on the day prior to filing to inform them of specific steps we have taken, which include providing temporary deferral of reimbursement “
IRS: Days to weeks
Most Americans will receive one of the $ 1,400 checks, but not everyone will receive a check immediately. The IRS will send the checks in batches over the next few days and weeks, although it has not specified that it will be the first to receive the checks.
People who have filed their tax returns for 2020 or 2019 and have a bank account on file with the tax agency are more likely to quickly receive incentive checks by direct deposit, based on previous payments. This is because the IRS prioritizes getting money for incentives quickly to those it knows it can reach – and it’s a massive effort, given that the tax agency has $ 422 billion in funds to distribute over 100 million. of taxpayers.
Most taxpayers do not have to take any action to receive checks, Treasury and IRS officials said Friday. People can also check out the “Get My Pay” website at IRS.gov, which the tax agency has reopened for the third round of incentive checks.