Update on EIP distributions

EIP distributions, sometimes called stimulus payments, began Round 2 last week and have started appearing in banks accounts across the country. Those that are being sent as ACH credits include the "XX" characters that distinguish payments that are not subject to garnishment. The IRS has also begun mailing EIP checks and will be sending EIP prepaid debit cards in some cases. There is no need to apply or register with the IRS, since information from the first EIP round is being used for the second round. The IRS has updated its "Get My Payment" to show the status of both Round One and Round Two EIPs.

According to an IRS press release, distribution will continue through mid-January. If taxpayers have not received their EIP by the time they file their 2020 tax returns, they can claim the Recovery Rebate Credit on their returns, where the credit will be calculated based on 2020 tax year information, including income.

A couple of reminders:

  • If an EIP by ACH is sent to a closed account, it should be returned using return reason R02
  • EIP ACH entries directed to deceased individuals' accounts should be returned using reason R15

 

 

Originally published January 5, 2021 by BankersOnline.com

« RETURN TO ALL NEWS