The Internal Revenue Service and the Treasury Department are beginning to send nearly 4 million economic impact payments by prepaid debit card, instead of by paper check or direct deposit.
The IRS had trouble with some direct deposits because it was relying on information from taxpayers’ 2018 and 2019 tax returns, and in some cases the money went to temporary bank accounts set up by tax prep chains. Paper checks are starting to go out, but they take longer. The prepaid debit cards promise to provide more convenience, but if they get lost in the mail, that could pose problems as well for people eagerly awaiting their economic impact payments.
Patrick Tokarski is a Product Manager for the Accounting and Audit Solutions. He has been with Wolters Kluwer since 2016. Prior to joining the product management team, he worked as an A&A Software Consultant helping firms become more productive by conducting training and consulting on various CCH® ProSystem fx® products including Engagement, Knowledge Coach and TeamMate Analytics® among others. Patrick also delivers multiple CCH® Learning and Development Academy School of Audit programs such as Knowledge-Based Audit (KBA) Methodology and role-based programs.
Patrick is a CPA and worked in public accounting as an auditor for seven years. In addition, he spent 8 years in the professional standards group of a national firm. He has also worked in private industry accounting as a controller and consultant helping to implement software and process changes.
Patrick received his Bachelor’s degree in Accounting from the University of Wisconsin – La Crosse. Patrick currently resides in Madison, Wisconsin.
Leslie helps Financial Services companies transform how they connect with their customers using the Salesforce platform. Prior to joining Salesforce, Leslie was a Digital Marketer and Software Product Manager at consumer lending FinTech startups.
Geoff Green serves as the Global Head for Mortgage and Lending at Salesforce. Geoff works with leading financial services organizations across all regions spanning mortgage, consumer lending, fintech and process optimization. Geoff brings a focus on borrower experience, borrower driven strategy, AI, and regulatory compliance within the context of growth and productivity. Geoff has extensive industry experience having served as an executive at the Federal Housing Administration (FHA). Geoff received an MPA from the Maxwell School of Citizenship and Public Affairs, Syracuse University, and played Football at Ithaca College where he received his undergraduate degree.
The Treasury said recipients can use the so-called EIP Cards to make purchases, get cash from in-network ATMs, and transfer funds to their personal bank account without incurring any fees. They can also check their card balance online, by mobile app, or by phone without incurring fees. The EIP Card can be used online, at ATMs, or at any retail location where Visa is accepted. The free, prepaid card comes with the kinds of consumer protections available to traditional bank account owners, including safeguards against fraud, loss and other problems.
“Treasury and the IRS have been working with unprecedented speed to issue Economic Impact Payments to American families,” said Treasury Secretary Steven T. Mnuchin in a statement Monday. “Prepaid debit cards are secure, easy to use, and allow us to deliver Americans their money quickly. Recipients can immediately activate and use the cards safely.”
Under the $2 trillion CARES Act that Congress passed in March in response to the economic fallout from the coronavirus pandemic, the IRS and the Treasury have been sending out payments of $1,200 to individual taxpayers, $2,400 to couples, plus an extra $500 for each of their dependent children.
The Treasury said it has already sent more than 140 million economic impact payments worth $239 billion to Americans by direct deposit to accounts at financial institutions, Direct Express card accounts, and by check. The Treasury-sponsored EIP Card is another way to distribute the money efficiently and securely to eligible recipients and their families. EIP Cards are being sent to qualified individuals who don’t have bank information on file with the IRS, and whose tax return was processed by either the Andover or Austin IRS Service Center.
The Treasury’s financial agent, MetaBank, will mail out the EIP Cards to eligible recipients starting this week. Each mailing will include instructions on how to activate and use the card.
The EIP Card is part of the Treasury’s larger U.S. Debit Card program, which offers prepaid debit card services to federal agencies for electronic delivery of non-benefit payments. MetaBank was picked as the Treasury’s financial agent for the U.S. Debit Card program in 2016, after a competitive selection process by the Treasury’s Bureau of the Fiscal Service.
For more information about the EIP Card, click here. For more details about economic impact payments, click here.
