The IRS has begun handing out a third round of federal stimulus checks, worth up to $ 1,400 per eligible adult and child. But the timing of getting a check may depend in part on a bank’s policy, with some JPMorgan Chase and Wells Fargo customers expressing frustration after the banks said the coronavirus payments won’t be available until March 17.
The banks say the timing of the payments is beyond their control. Although the IRS began cashing out payments over the weekend, the official payment date isn’t until March 17, Wells Fargo and JPMorgan Chase told CBS MoneyWatch. Wells Fargo added that it is “not holding the money” and that it will deposit the money into accounts as soon as possible.
Still other banks immediately credit the money to customers’ accounts. Current, a New York-based banking startup, uses its own balance sheet to credit the funds rather than waiting 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 trillion bill.
The organization that manages wire transfers said Monday that the IRS had set the March 17 settlement date, adding that there is “no mystery” as to where the money is. “It’s still with the government,” Nacha, the organization that runs the ACH network, said in a statement to CBS MoneyWatch.
“This is the date when the IRS will provide the funds to the banks and credit unions to further make available to recipients,” Nacha said in the statement. “Under Nacha rules, banks and credit unions must make the money available to account holders on the settlement date at 9:00 am local time; again, in this case, March 17th.”
It added, “The IRS chose the date of March 17, which is the date the IRS plans for settlement to take place.” It added that the payments should show up on the accounts at 8:30 a.m. ET on March 17.
“This is literally when government money will be transferred to the settlement accounts of banks and credit unions at the Federal Reserve,” the group added.
Threatening to close accounts
Some clients have threatened to leave their bank on social media, due to the delay in accessing the funds.
“We know the importance of the incentive funds to our customers, and Wells Fargo makes the incentive funds available immediately when they are made available to us,” the company said in a statement.
A group of nine banking and credit unions on Tuesday placed the blame on the IRS instead of the banking institutions.
“Although the IRS could have chosen to send the money via Same Day ACH or provided for an earlier effective date,” said the group, which includes the American Bankers Association and Credit Union National Association. in the statement. “It’s up to the sender, in this case the IRS, to decide when he wants the money to be made available and the IRS chose March 17.”
But Chase and Wells Fargo said the money won’t be released until Wednesday. Wells Fargo added that it would forgo any overdrafts as a result of the matter.
“Our goal is to support our customers, and we will proactively reverse outstanding Wells Fargo fees, including overdraft fees, for those who have a qualifying negative closing balance when their incentive payment is deposited,” the bank said in an email statement. mail.
Wells Fargo added, “As with previous incentive payments, we will proactively contact those customers who have a qualifying negative closing balance the day prior to the deposit to inform them of the specific steps we have taken, including providing temporary postponement of repayment “
IRS: Days to Weeks
Most Americans will receive a check for $ 1,400, but not everyone will receive a check immediately. The IRS will ship the checks in batches for the next few days and weeks, although it has not specified that it would be the first to receive the checks.
People who have filed their 2020 or 2019 tax returns and registered a bank account with the tax authorities are more likely to receive their incentive checks more quickly via direct deposit, based on the past rollout of payments. That’s because the IRS prioritizes making the stimulus money available quickly to those it knows can achieve it – and it’s a huge effort, given that the IRS has $ 422 billion in funds to distribute to more than 100 million. taxpayers.
Most taxpayers don’t need to take any action to receive the checks, Treasury and IRS officials said on Friday. People can also check out the “Get My Payment” site at IRS.gov, which reopened the tax authorities for its third round of incentive checks.