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Now that President Trump has signed a $900 billion relief package authorizing a new round of direct payments, the new question for many is when the federal government will sign over the $600 checks.
The Internal Revenue Service could start distributing the $600 checks for every eligible man, woman and child as soon as this week, according to one tax expert, but he said it’s more likely the money starts flowing into bank accounts early next week.
When the IRS sent out more than 160 million payments totaling more than $270 billion in the first round of stimulus payments, the agency invented the proverbial wheel that will make distribution roll quickly this time, said Pete Sepp, the president of the National Taxpayers Union, a right-leaning think tank.
“The infrastructure has been set up for this distribution method and has been tested already,” he said.
Trump signed the bill, which devotes $166 billion to direct payments, on Sunday. But Sepp noted the Treasury Department and the IRS only have a four-day workweek, during the holiday season, to start gearing up for payments.
Friday, New Year’s Day, is a federal holiday, and many banks may close down their operations too, he noted.
For that reason, Sepp thinks early next week is a more likely timetable. It could take two months for the IRS to send out most of the checks, he added.
“ A growing number of Senate Republicans say they support $2,000 direct checks, including Sens. Marco Rubio, David Perdue and Kelly Loeffler. ”
Some other observers predict a similar timeline, pegging the possible start date to next week. “It looks like those checks won’t start going out until next week,” Texas A&M University professor Raymond Roberson told KBTX, a local television station.
The Treasury Department and the IRS did not immediately respond to MarketWatch requests for comment.
When congressional leaders announced a deal on Dec. 20, Treasury Secretary Steven Mnuchin said the next day on CNBC that “people are going to see this money at the beginning of next week. It’s very fast.”
But then Trump suggested he might not sign the bill, calling for $2,000 checks instead. He ultimately put his signature on the bill Sunday night.
The IRS notes that its “Get My Payment” portal to track stimulus payments is offline for the time being. “The IRS continues to monitor and prepare for new legislation related to Economic Impact Payments,” the agency’s website says. “The IRS will make updates to the Get My Payment portal to provide updated information for taxpayers in the near future.”
Most of the rules surrounding the first $1,200 checks apply to the second round of $600 checks, though one difference is that the payment for child dependents has increased to $600 from $500.
As questions on distribution timetables remained, House lawmakers passed a bill Monday to increase the size of the direct payments to $2,000. A growing number of Senate Republicans say they support $2,000 direct checks, including Sen. Marco Rubio of Florida and Sens. David Perdue and Kelly Loeffler, two Georgia lawmakers running for re-election on Jan. 5.
