The IRS has begun distributing a third round of federal stimulus checks, up to $ 1,400 per eligible adult and child. But the timing of getting a check may depend in part on the policy of a bank, and some customers of JPMorgan Chase and Wells Fargo have expressed frustration after the banks said the coronavirus relief would only be available March 17th.
The banks say that the timing of the payments is beyond their control. Although the IRS began issuing payments over the weekend, the official payment date is only March 17, Wells Fargo and JPMorgan Chase told CBS MoneyWatch. Wells Fargo added that he “does not own the funds” and that he will pour the money into accounts as soon as possible.
More banks immediately credit the funds on customer accounts. Current, a New York-based banking firm, uses its own balance sheet to credit the 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 billion bill.
The organization that manages electronic transfers said Monday that the IRS has set the settlement date of March 17, adding that there is “no mystery” about where the money is. “It’s still with the government,” Nacha, the organization that runs the ACH network, told CBS MoneyWatch in a statement.
“This is the date on which the IRS will provide the funds to the banks and credit unions to further make available to recipients,” Nacha said in the statement. “The Nacha rules require the banks and credit unions to make the funds available to the account holders on the settlement date at 09:00 local time. Again, in this case, March 17.”
It added: “The IRS has chosen the date of March 17, that is, the date on which the IRS intends the settlement to take place.” It added that the payments had to be settled into accounts on March 17 at 08:30 ET.
“This is literally the time when the money from the government will be transferred to the bank accounts and credit unions’ settlement accounts with the Federal Reserve,” the group added.
Threatens to close accounts
Some customers have threatened to terminate their banks on social media, citing the delay in accessing the funds as a reason.
“We know how important the stimulus funds are to our customers, and Wells Fargo makes the stimulus funds available immediately when they are made available to us,” the company said in a statement.
A group of nine groups of banking and credit unions on Tuesday pointed the blame at the IRS, rather than at banking institutions.
“Although the IRS could choose to send the funds through Same Day ACH or provide for an earlier effective date, it chose not to do so,” said the group, which includes the American Bankers Association and Credit Union National Association, the statement said. “It is the job of the sender, in this case the IRS, to decide when the money should be made available and the IRS chose on March 17.”
But Chase and Wells Fargo said the funds would only clear out on Wednesday. Wells Fargo added that he waives any overdraft fees incurred as a result of the issue.
“Our goal is to support our customers, and we will proactively reverse the outstanding Wells Fargo fees, including overdrafts, for those who have a qualifying negative closing balance when their stimulus payment is deposited,” the bank said in an e-mail. postal statement said.
Wells Fargo added: ‘As with previous stimulus payments, we will proactively reach out to customers who are eligible for a daily balance on the day before the deposit, to notify them of the specific steps we have taken, which the provision includes deferral of temporary repayment “
IRS: Days to Weeks
Most Americans will receive one of the $ 1400 checks, but not all will receive a check immediately. The IRS will send the checks in groups over the next few days and weeks, although not specified, will be the first to receive the checks.
People who have submitted their tax returns for 2020 or 2019 and have submitted a bank account with the tax agency are likely to receive their stimulus checks quickly through direct deposit, based on the advance payments. This is because the IRS gives priority to issuing the stimulus money quickly to those he knows can reach it – and it’s a huge effort, as the tax agency has $ 422 billion in funds to distribute to more than 100 million taxpayers .
Most taxpayers do not need to take any steps to receive the checks, Treasury and IRS officials said Friday. People can also go to the “Get My Payment” website at IRS.gov, which reopened the tax agency for the third round of stimulus checks.