Right now, the Internal Revenue Service (IRS) can be best characterized as having, to quote the famous Dickens novel, “the best of times and the worst of times.”
With the passage of the second economic stimulus bill during this pandemic, the IRS and the U.S. Treasury Department were given, for the second time, the job of pushing out billions of dollars to taxpayers who desperately need some economic assistance for basic expenses. The IRS and Treasury’s ability to do the job has been decidedly mixed.
In this article, we are going to talk about the status of the second, $600, economic stimulus payments, and what is behind the delay in the payment for some. If, after reading this article, you would like to discuss your own tax situation, we invite you to call the Sarasota IRS tax solution attorney at the Law Office of Mary E. King, P.L.
The Law Office of Mary E. King, P.L. can make sure that your tax issues are resolved efficiently and at the lowest cost to you. Please fill out our online contact form, or call us at 941-906-7585 today.
Finally, a Stimulus Bill is Passed
It was a long time coming, but a second economic stimulus bill to help those through the pandemic was finally passed into law at the end of 2020. The law provided every American taxpayer who made $75,000 or less a $600 payment for themselves and another $600 for every eligible child.
The amount of money earmarked for the $600 stimulus payments was approximately $164 billion. As with the first round of stimulus payments, the IRS and Treasury were given the responsibility to pay the economic stimulus payments as soon as possible. They were also given a deadline for the second round of stimulus checks on January 15, 2021.
The rollout of the payments was, on the one hand, amazingly successful. Yet, on the other hand, it has been a huge disappointment for millions of Americans.
The Successful Part of the Stimulus Payment Rollout
We’ll go with the good news first. The U.S. Treasury has paid out almost 70 percent of the stimulus payments so far. Thus, millions of American taxpayers have already received the $600 payment through direct deposit or by getting a check in the mail.
In fact, the IRS has been getting the money out faster than it did with the first round of stimulus payments last year (which were $1,200 per person and an additional $600 per child). Thus, about $112 billion, of the total $164 billion, has already been successfully distributed.
The IRS and Treasury are getting some praise for being able to send out payments to millions of Americans within one week of the passage of the second coronavirus stimulus bill.
That said, there is some bad news as well.
The Not-So-Successful Part of the Rollout
The problem with the IRS and Treasury’s distribution on this second round is that those who did not yet receive their $600 payment, maybe waiting around a while to get it, or will need to file their 2020 tax returns first.
For a number of reasons, the IRS is now telling Americans that if they did not receive their $600 payment, then they should claim the $600 economic stimulus as a credit on their 2020 tax returns. The result is that many Americans who are depending on this money to stay afloat will be facing additional hardship because of the delay.
One big reason for this rollout problem is that the responsibility to push out the second round of payments came right at the beginning of the 2020 tax season when the IRS is now doing critical testing of its systems to be prepared to handle the 2020 tax returns that will start coming in.
Also, there appears to be a glitch for those who use TurboTax, Jackson Hewitt, H&R Block, or some other tax preparation service with regard to getting the second stimulus payment.
What Can You Do To Get Your Payment?
The first thing you need to do to determine whether the “check is already in the mail,” is to go to the IRS.gov website and use the “Get My Payment” tool on the site. If that tool returns the message “Payment Status #2 – Not Available,” then that means you are likely one of those who will not get a stimulus payment automatically for quite some time.
In response, the best thing you can do is be sure to claim the $600 credit on your 2020 tax return. It is not ideal, but at least you will be able to get that money . . . eventually.
If you need some tax solutions to help you save money whenever possible, you should consult a tax professional.
Consult with Mary E. King, Sarasota IRS Tax Solution Attorney
Having a Sarasota IRS tax solution attorney at your side to advise you on this second round of stimulus money, and to give you options for your tax returns this year is worth its weight in gold.
Consider reaching out to the Law Offices of Mary E. King for help. Tax matters can be complicated, and thus, it is always helpful to have someone in your corner who understands the tax law and deals with the IRS on a regular basis. Indeed, beyond just the stimulus payment from the IRS, there could be other issues with which a seasoned tax attorney can help.
So, when it comes to dealing with tax relief and tax litigation, you need to talk to a Sarasota IRS tax solution attorney who can help. Mary E. King has spent her career concentrating in tax law and can help you with tax scams in Florida and elsewhere. Attorney King has a wealth of information about what types of options would make the most sense for you and your business.
That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax lawyer of Florida, is the first step you should take towards relief.
The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses. Call us today to schedule an initial consultation. With years of experience as a tax lawyer in Sarasota for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.