New stimulus checks could arrive in August if Congress acts fast

Many American taxpayers could get a second stimulus check this month if Congress approves them soon, a report says.

The Internal Revenue Service could send out most of the proposed $1,200 payments by the end of August if lawmakers reach a deal to send them out this week, IRS staffer Chad Hooper told CNBC in a Tuesday report.

That’s because the tax agency is “better positioned” to distribute the cash than it was in April, when taxpayers encountered glitches in receiving the payments meant to blunt the economic impact of the coronavirus pandemic, according to Hooper.

“The infrastructure is already in place to administer such a payment,” Hooper, the president of the Professional Managers Association, which represents IRS managers, told CNBC.

But that timeline looks increasingly unlikely as Congress remains deadlocked over a new coronavirus aid package. While Democrats and Republicans both reportedly support another round of direct payments, they are at odds over other measures including aid to state and local governments and expanded unemployment benefits.

Talks appeared to deteriorate Wednesday with Treasury Secretary Steven Mnuchin and Democratic leaders Nancy Pelosi and Chuck Schumer accusing each other of refusing to budge, just two days after Mnuchin told CNBC the Trump administration was willing to produce an aid package this week “if we can get a fair deal.”

If negotiations recover, the second round of stimulus checks could be similar to the first. Lawmakers from both parties have backed $1,200 payments for individuals earning up to $75,000 that would be smaller for those making more than that amount and completely phased out for anyone earning more than $99,000, according to CNBC.

The IRS has said it delivered initial stimulus payments to more than 159 million Americans by June 3, 120 million of whom got the money via direct deposit. Hooper told CNBC that taxpayers should file their 2019 tax returns electronically if they haven’t already to make sure the IRS has their most current information on file in case the new checks are approved. Those who don’t usually file tax returns can submit their payment details through the IRS website.

An IRS spokesman did not immediately respond to an email Thursday morning asking about the potential timeline for delivering a second round of checks.

Share this article:

Source: Read Full Article