Stimulus Payment Schedule

[BP.]

The latest stimulus payment notice I've seen on the IRS website is IR-2008-18, Feb. 13, 2008, saying:

"A payment schedule for taxpayers will be announced in the near future."

Two clients this week have told me that payment schedules are circulating at their offices, that show payment by the last two digits of the SSN; one of the clients is not scheduled to receive payment until Nov. Urban legend? Or did you guys hear about this too?

[KBTS]

Same here

I've had several clients tell me the same thing about the schedule based on SS numbers. Have not heard November as the latest date - July is as late as I've heard. Not sure where they are getting this information - I have not seen anything official from the IRS.

[ChEAr$]

Late payments such as that

I've had several clients tell me the same thing about the schedule based on SS numbers. Have not heard November as the latest date - July is as late as I've heard. Not sure where they are getting this information - I have not seen anything official from the IRS.

would defeat the whole purpose of the stimulus which is to get $$$ in hands of taxpayers
with all possible speed. I would think that all checks will be out for those who have filed
by 4/15 by mid june at latest.

[JohnH]

Schedule

The most recent CCH Tax Briefing gives some general info about the schedule. They say that the Treasury Dept can print a maximum of 7 million checks per week in May and then the number climbs to 11 million checks per week in June (because most 2007 refund checks have been issued by then). If they issue 130 million checks, then it appears that in round figures they would need a minimum of 14 weeks to issue all the checks. This would put them into late July to mid-August if the schedule holds, which squares with Harlan's estimate..

Of course, this doesn't take into account the number of that 130 million who will file extensions or late-file their returns and will be receiving their rebate checks later in the year. Subtracting those form the mix should enable the IRS to send out checks somewhat earlier to those who qualify by Apr 15. The explanation also said that IRS will direct deposit the checks in cases where the original tax refund was direct deposited. I don't know if the direct deposits are considered "checks" when counting the weekly average of 7 million / 11 million or if they can somehow get them out faster.

The article also mentioned that the 2001 distribution system was based on the last 2 digits of the SocSec#, but it did not speculate whether or not iRS intends to use the same method for scheduling them this time around.

[fitzpats]

The most recent CCH Tax Briefing gives some general info about the schedule. They say that the Treasury Dept can print a maximum of 7 million checks per week in May and then the number climbs to 11 million checks per week in June (because most 2007 refund checks have been issued by then). If they issue 130 million checks, then it appears that in round figures they would need a minimum of 14 weeks to issue all the checks. This would put them into late July to mid-August if the schedule holds, which squares with Harlan's estimate..

Of course, this doesn't take into account the number of that 130 million who will file extensions or late-file their returns and will be receiving their rebate checks later in the year. Subtracting those form the mix should enable the IRS to send out checks somewhat earlier to those who qualify by Apr 15. The explanation also said that IRS will direct deposit the checks in cases where the original tax refund was direct deposited. I don't know if the direct deposits are considered "checks" when counting the weekly average of 7 million / 11 million or if they can somehow get them out faster.

The article also mentioned that the 2001 distribution system was based on the last 2 digits of the SocSec#, but it did not speculate whether or not iRS intends to use the same method for scheduling them this time around.

But since the IRS is using the direct deposit for these checks, would that increase the amount that they could write? I don't know about what the IRS can do, but I figure that with a click of a mouse, the majority of filers with direct deposit could get a deposit within the first week that the "checks" are distributed. Please correct me if I'm wrong.

[ChEAr$]

No correction:

But since the IRS is using the direct deposit for these checks, would that increase the amount that they could write? I don't know about what the IRS can do, but I figure that with a click of a mouse, the majority of filers with direct deposit could get a deposit within the first week that the "checks" are distributed. Please correct me if I'm wrong.

Cause you're right on the money.

Client yesterday was surprised about her forthcoming 600$ and as I walked her out to her car, was explaining the purpose of the "stimulus". I took one look at her 1987 car and
immediately suggested a paint job!
That fact might add 2000$ in resale value to the car.

[JohnH]

You raised the right question

That's what isn't clear from any of their pronouncements thus far. When they say they can issue 7 million / 11 million "checks" per week, are they talking about physical checks or do they simply mean they can process that number of refunds per week, regardless of the payment method?

I'm guessing they mean the latter, because no process of this type is just a matter of a mouse click. There must be some sort of cross-check process for QC purposes, and every system has capacity limits. In any case, they clearly aren't going to push a button and all the rebates suddenly appear in the accounts of those who elected direct deposit. So I'm still thinking the May - July or May-August time frame is most likely correct.

[ecb34691]

"Unofficial"

Unofficial word from inside the IRS is 10 cycles based on last digit of SSN beginning in early May.

[bertrans]

The 02/18 issue of Federal Tax Weekly says that the IRS will depend 'heavily' on direct deposit; 'bulk' of rebate refunds are to go out, in SSN last 2 digit order, by end of August.

[user23490]

this is what I heard

SS# ends: Check sent
00-09 7/23
10-19 7/30
20-29 8/6
30-39 8/13
40-49 8/20
50-59 8/27
60-69 9/3
70-79 9/10
80-89 9/17
90-99 9/24

Re: Jointly filed returns, check will be sent per the first SS# on the return

I have little confidence in this list, but it was forwarded from someone in a position to know.

Nothing about how Direct Deposits would be handled - but I'm guessing not the same as checks.

[gailtaxed]

That looks like the same schedule as last time with the first payments beginning in July. It might be accurate if you change the first date to May (whenever the checks will begin) and then follow through each week.

[oceanlovin'ea]

Start in May

Yes, I thought the checks were supposed to start going out in May.

I am telling my clients we haven't received final word for the IRS. When we know someting more definite I will send them an email.

Linda F

[JohnH]

Why send them an email?

No need to notify them - they are going to get information from their hairstylist or mechanic before you can send them anything. Plus, those people are much more reliable than tax preparers when it comes to the more weighty tax matters.