Stimulus Checks: IRS Will Now Send Payments to Low-Income, Disabled Parents Who Didn't Receive $500 for Children

Months after the first round of stimulus checks began being distributed, the Internal Revenue Service (IRS) is resolving a few errors and taking a major step with one of its processes. In a major reversal of procedures, the IRS will be now allowing low-income, disabled parents who missed requesting $500 for their children to claim their money. After the first wave of payments began being distributed in mid-April, thousands of Americans reported they had not received the amount for eligible dependents.

In a notice posted to its website, the IRS said that it "will issue $500 per qualifying child to eligible individuals who used the Non-Filers tool before May 17, 2020, and claimed at least one qualifying child." The agency explained that the recipients had not received the payment for qualifying dependents due to an error that was corrected on May 17. After it was corrected, those who had used the non-filers tool to receive their payments had correctly received payments for dependents.

According to the IRS, the $500 payments will be delivered either by direct deposit or mail, to the bank account or address the IRS has on record, beginning in early August. The IRS notes that those awaiting this additional payment can track the sum by using the Get My Payment tool on the IRS website. Recipients can also expect to receive "another notice in the mail letting you know the additional $500 EIP per qualifying child was issued." The agency is recommending that recipients "keep this letter for your records."

The IRS is resolving this issue after lawmakers, in a letter, complained that some 500,000 people who are not required to file tax returns had not received payments for their children. Sent in July, the letter, signed by House Ways and Means Chairman Richard Neal and Senator Ron Wyden, the Finance Committee's top Democrat, argued that there was an "urgent need to resolve all outstanding issues concerning the economic impact payments (EIPs)." Neal and Wyden said that the Department of Treasury and the IRS needed to 'promptly ensure all remaining EIPs have been issued to eligible Americans."

As the IRS works to resolve errors in the first round of stimulus payments, Congress is currently discussing a second round. Proposed by Senate Republican the HEALS Act is currently being negotiated on Capitol Hill, with an additional round of direct payments gaining bipartisan support.