The American Rescue Plan Act, which was approved by President Joe Biden on March 11, 2021, comprised the third tranche of stimulus payments. The statute permitted payments to qualified individuals and families of up to $1,400 each. However, a lot of people haven’t yet gotten their money. Therefore, why are the stimulus checks delayed?
The overwhelming volume of payments that the IRS must handle is the main cause of the delay. The organization is in charge of sending out millions of cheques and direct deposits, and processing each one requires time. The IRS must also confirm each recipient’s eligibility, which can add time to the process.
The IRS’s obsolete technology is another cause behind the delay. The agency has spent years trying to modernize its systems, and the outbreak has only made matters worse. It is now considerably more challenging for the IRS to process payments swiftly due to its shift to remote labor and staffing shortages.
The IRS had distributed more than 130 million stimulus payments totaling close to $335 billion as of mid-April 2021. Many individuals are still waiting for their money, though. According to the IRS, payments will continue to be sent in the upcoming weeks and months, so recipients should keep a watch on their mailboxes and bank accounts.
Many folks also have questions regarding their tax returns in addition to the stimulus payments. Taxpayers now have until May 17, 2021, when the IRS has extended the deadline for filing their taxes. However, depending on your 2020 tax returns, you might be eligible for stimulus payments, so if you haven’t already, file as soon as you can.
Many people use TaxSlayer as their tax preparation software of choice. The IRS has approved the software, which can assist you in filing your taxes swiftly and simply. TaxSlayer does, however, charge a fee for its services, so be careful to review the costs prior to using it.
In conclusion, a number of variables, such as the volume of payments that the IRS must process and the agency’s old equipment, contribute to the lateness of the stimulus checks. However, beneficiaries should continue to check their bank accounts and mailboxes since the IRS is attempting to issue payouts as soon as feasible. Taxpayers should also file their 2020 tax returns as soon as possible and, if necessary, think about employing tax preparation software like TaxSlayer.