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Deposit of Economic Stimulus Checks

Tuesday, May 12, 2020   (0 Comments)
Posted by: Sabrina Hidalgo
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Several religious institutes have had a problem in depositing the economic stimulus checks. The issue is getting their bank to accept U.S. Treasury Department checks payable to an individual who is not a signer on the account (i.e. a third-party check).
 
Talk with the bank branch manager. You can make all members of the community co-owners by corporate resolution, then have the branch manager approve the deposits. They would not have signature authority over the checking or savings account, but would be listed with name, date of birth and Social Security number on the account.
 
The “Johnson Letter” on the RCRI web site refers to the deposit of Social Security pensions into a communal account. The economic stimulus checks might be considered in a similar manner. The letter may be a way to help convince the branch manager to accept the checks for deposit. They need to understand that a religious community holds all goods in common and the members take a vow of poverty. A copy of the LRCR memorandum and letter is available by Clicking Here.
 
ADDENDUM (5/12/2020) : The Johnson Letter is also codified in the POMS at GN 02402.050 Account Titles. Click Here
 
Reference to this section in the POMS might also be considered when working with your financial institution if this question should arise. It may be worthwhile to first share a copy of GN 02402.050 in POMS with your financial institution prior to following the "co-owners route" as reference to this title in POMS may resolve the question outright. Note especially Section B (2)(a), including the introductory paragraph, when sharing this title in POMS with your financial institution. Have a copy of GN 02404.050 from POMS with you when you visit your financial institution to deposit the stimulus checks.
 
The list of “co-owners” should be updated regularly and sent to a bank officer. SS checks or direct deposits would be routinely received and credited.
 
It is important that each individual endorse the check if possible. A restrictive endorsement would be best, such as “Pay to the order of (legal name, e.g.) Sisters of …, for deposit only, /x/ signed …”. If the person is not able to sign, hopefully someone in leadership has power of attorney to act for that person.
 
(Recently a member of a community got the economic stimulus check and endorsed it “Pay to the Order of Jesuit Community of …” and signed it. The bank was at first reluctant to accept it for deposit. The teller was told that he was a member of the community and an officer. The teller contacted a higher-up and got the deposit approved.)
 
Appeal to a higher-up at the bank if the local manager does not agree to accept the checks.
 
Also, if an economic stimulus check is received for an individual who is deceased, there is a box to check on the U.S. Treasury Department envelope “Deceased”. Then cover the address with a label and put it in the mail. The Treasury Department will receive the uncashed check and void it.
 
 
See More Information from I.R.S. below about Economic Stimulus Payments:
 
Act by Wednesday for chance to get quicker Economic Impact Payment; timeline for payments continues to accelerate
 
WASHINGTON – With a variety of steps underway to speed Economic Impact Payments, the Treasury Department and the Internal Revenue Service urged people to use Get My Payment by noon Wednesday, May 13, for a chance to get a quicker delivery.
 
The IRS, working in partnership with Treasury Department and the Bureau of Fiscal Services (BFS), continues to accelerate work to get Economic Impact Payments to even more people as soon as possible. Approximately 130 million individuals have already received payments worth more than $200 billion in the program’s first four weeks.
 
Starting later this month, the number of paper checks being delivered to taxpayers will sharply increase. For many taxpayers, the last chance to obtain a direct deposit of their Economic Impact Payment rather than receive a paper check is coming soon. People should visit Get My Payment on IRS.gov by noon Wednesday, May 13, to check on their payment status and, when available, provide their direct deposit information.
 
“We’re working hard to get more payments quickly to taxpayers,” said IRS Commissioner Chuck Rettig. “We want people to visit Get My Payment before the noon Wednesday deadline so they can provide their direct deposit information. Time is running out for a chance to get these payments several weeks earlier through direct deposit.”
 
After noon Wednesday, the IRS will begin preparing millions of files to send to BFS for paper checks that will begin arriving through late May and into June. Taxpayers who use Get My Payment before that cut-off can still take advantage of entering direct deposit information.
 
How Get My Payment works
The Get My Payment tool provides eligible taxpayers with a projected Economic Impact Payment deposit date. The information is updated once daily, usually overnight. There is no need to check more than once a day. Taxpayers who did not choose direct deposit on their last tax return can use this tool to input bank account information to receive their payment by direct deposit, expediting receipt.
 
Non-Filers portal remains available
For those not required to file a federal tax return, the Non-Filers: Enter Payment Info Here tool helps them submit basic information to receive an Economic Impact Payment quickly to their bank account. Developed in partnership between the IRS and the Free File Alliance, this tool provides a free and easy option for those who don’t receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and VA Compensation and Pension (C&P) benefits. The Non-filers tool is also available in Spanish.
 
Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also be sent to those receiving Social Security retirement, disability benefits, Railroad Retirement benefits, Veterans Affairs benefits or Supplemental Security Income soon.
 
Watch out for scams related to Economic Impact Payments
The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information.
 
Stay informed with Economic Impact Payment FAQs; Social Media platforms
Taxpayers should check the Frequently Asked Questions (FAQs) for more information.

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