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The IRS is now starting to distribute the third set of stimulus checks, valued up to $ 1,400 per eligible adult and child. But when to get a check may depend in part on a bank’s policies, with some clients at JPMorgan Chase and Wells Fargo expressing frustration after banks said coronavirus relief payments would only be available. the 17th of March.
The reason, say the banks, is due to a problem beyond their control. Although the IRS started issuing payments over the weekend, the official payment date is not until March 17, Wells Fargo and JP Morgan Chase told CBS MoneyWatch. Wells Fargo added that it “does not hold the funds” and will deposit the money into accounts as soon as possible.
Yet other banks immediately credit the funds to customers’ accounts. Current, a New York-based banking startup, uses its own balance sheet to credit funds rather than wait for settlement. Some of his clients gained access to their stimulus funds on March 12, a day after President Joe Biden signed the $ 1.9 trillion bill.
The organization that handles wire transfers said Monday that the IRS had set the settlement date for March 17 and added that there was “no mystery” about where the money is. “It’s always with the government,” Nacha, the organization that governs the ACH network, told CBS MoneyWatch in a statement.
“This is the date that the IRS will provide the funds to banks and credit unions to make them more available to beneficiaries,” Nacha said in the statement. “The Nacha rules require banks and credit unions to make 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 chose the date March 17, which is the date the IRS intends to make the settlement.” He added that the payments are expected to clear in the accounts at 8:30 a.m. EST 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 at the Federal Reserve,” the group added.
Threat to close accounts
Some customers have threatened to leave their banks on social media, citing the delay in accessing funds as the reason.
But Chase and Wells Fargo said the funds won’t clear until Wednesday. Wells Fargo added that it would waive any overdraft fees resulting from the issue.
“Our goal is to support our customers, and we will proactively waive ongoing Wells Fargo fees, including overdraft fees, for those who have an eligible negative daily balance when their stimulus payment is deposited,” said the bank in a press release sent by email.
Wells Fargo added, “As we have done with previous stimulus payments, we will proactively contact customers who have a negative daily closing balance eligible the day before deposit to inform them of the specific actions we have taken, in particular by providing temporary repayment deferrals “
IRS: days to weeks
Most Americans will receive a check for $ 1,400, but not everyone will receive a check immediately. The IRS will be sending out the checks in batches over the next few days and weeks, although it didn’t say it would be the first to receive the checks.
People who have filed their 2020 or 2019 tax returns and have a bank account with the tax agency are more likely to quickly receive their stimulus checks by direct deposit, based on previous payment deployments. That’s because the IRS prioritizes the rapid distribution of the stimulus money to those it knows it can reach – and that’s a huge effort, given that the tax agency has $ 422 billion in funds to distribute to over 100 million taxpayers.
Most taxpayers don’t need to take any action to receive the checks, Treasury and IRS officials said on Friday. People can also check out the “Get My Payment” site on IRS.gov, which the tax agency has reopened for the third round of stimulus checks.
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