ALERT: IRS Changes Policy, Will Reissue Some Misdirected EIPs

The Internal Revenue Service (IRS) has announced that it has changed its position, and will reissue some Economic Impact Payments that had been mistakenly sent to tax preparers and were returned by those tax preparers to the IRS per IRS instruction. Previously, the IRS had said that no payments would be re-issued, and taxpayers would have to claim the payments they didn’t receive on their 2020 federal tax returns as Recovery Rebates. The IRS now says it will reissue these to eligible individuals, both by ACH and check. To the best of our knowledge, the payments will be issued around Feb. 1. However, the situation does continue to evolve, and NEACH will keep you updated as we learn additional information.

 

For additional information see the IRS Jan. 10 press release.