“The timing could be more challenging this time around, but the IRS could probably start disbursing the money in January,” said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.
In March, Congress provided individuals with $1,200 direct payments and couples with $2,400 plus $500 per child under the $2 trillion CARES Act.
As with that first round, the new payments will gradually phase out for individuals with adjusted gross incomes over $75,000, and those earning over $99,000 will receive nothing. For couples, the income thresholds are doubled.
Who will get the money the fastest
The payments do not all go out at once. Those whose bank details are Those registered with the IRS are likely to get the money first because it’s deposited directly into their account. Others receive paper checks or prepaid debit cards in the mail.
Tax authorities under pressure
Additional checks may be delayed the start of the 2020 tax return season.
A second stimulus check will require the agency to make changes to the declaration forms, some of which have already been sent to the printers.
December is not an ideal time to increase the workload of the IRS. It is usually the month when work is done to prepare for the upcoming filing season and there may be more staff on leave than usual due to the holidays.
“I believe the IRS will deliver the stimulus checks in a timely manner. It may well come at the cost of filing season start date,” said Chad Hooper, the executive director of the Professional Managers Association, which advocates for more than 30,000 nonprofits . – IRS workers’ union.
This story has been updated to include details of the Covid-19 Relief and State Financing Act signed by President Trump on Sunday.
Kevin Liptak of CNN contributed to this report.