Longwood Florida Attorneys
Impacts of the Corona Stimulus Package

Impacts of the Corona Stimulus Package

There is a lot of substance to the Corona Stimulus package and even more to confuse even the most sophisticated financial and estate planners. We are just beginning to determine the impact on our individual and corporate clients. But one of the aspects that has troubled us addresses our senior and/or veteran clientele who are no longer required to file tax returns. Impact upon individuals was forecast by the White House to be felt within the next three weeks. But is that what will really happen?

March 31, 2020, Treasure Secretary Steve Mnuchin announced that, “We expect that within three weeks, that people who have direct deposit information with us will see those direct deposits into their bank accounts, and we will create a web-based system for people where we don’t have their direct deposit, they can upload it so that they can get the money immediately as opposed to checks in the mail.” Sounds great for those who are really in need of the extra funds. But here’s the problem: The IRS is the only governmental entity authorized to pay out the stimulus money. That means, for those who don’t file tax returns, but receive nominal amounts directly from Social Security or through the VA will not receive direct deposit checks, as neither the Social Security Admin nor the VA may share recipients info with the IRS due to existing privacy laws. Therefore, those who no longer need to file tax returns must file a simple tax return and upload it to the IRS website. So, what’s the problem? The form is not yet available. But for those who receive Social Security and or VA pensions, they will presumably eventually receive their checks through the mail – as soon as the IRS determines the details.

The IRS website helpfully advises seniors and others who typically do not file returns that they should not call the IRS, who will update the page on the subject. We wonder about that group of people who can’t access a computer during stay in place sheltering. They should relax knowing their IRS is on top of this and will be getting back to them soon.

At this posting, it is unclear how the stimulus package will impact those who receive VA Pensions. We will share what we learn because Knowing the Difference Makes a Difference.


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