Letter to Treasury and IRS on Economic Impact Payments
- Date
- 2020-07-08
Summary
A letter dated July 8, 2020 from James E. Clyburn, Chairman of the Select Subcommittee on the Coronavirus Crisis, to the Secretary of the Treasury and the Commissioner of Internal Revenue about Economic Impact Payments under the Coronavirus Aid, Relief, and Economic Security Act. The letter states that Treasury and the Internal Revenue Service announced 159 million individual payments worth more than $267 billion, that neither agency reported how many eligible people are still awaiting payment, and that by one estimate 12 million Americans are not covered by the automatic payment criteria. It sets out seven numbered requests due by July 22, 2020, covering payments delivered and outstanding, outreach to non-filers, the payment schedule, debit card activation, use of the non-filer tool, and scams identified. It cites House Resolution 935 as the basis for the investigation.
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Full text
July 8, 2020
The Honorable Steven T. Mnuchin The Honorable Charles P. Rettig
Secretary Commissioner
Department of the Treasury Internal Revenue Service
1500 Pennsylvania Avenue, N.W. 1111 Constitution Avenue, N.W.
Washington, D.C. 20220 Washington, D.C. 20220
Dear Secretary Mnuchin and Commissioner Rettig:
The Select Subcommittee on the Coronavirus Crisis is concerned that millions of
Americans have not received Economic Impact Payments (EIPs) that Congress intended for them
to receive under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Given that
the intent of these payments was to swiftly put money in the pockets of struggling Americans to
help them meet their essential needs while supporting the nation’s economy, I am especially
concerned that the eligible recipients still awaiting these payments are disproportionately low-
income. 1 Accordingly, as the economic crisis caused by the coronavirus outbreak deepens—and
may get worse as infections surge in many parts of the country—the Select Subcommittee is
writing to seek information about the Americans still awaiting federal relief and what the
Administration is doing to expedite these payments.
Last month, the Department of the Treasury and Internal Revenue Service (IRS)
announced that 159 million individual payments, worth more than $267 billion, had been
distributed since Congress enacted these payments in the CARES Act. 2 However, neither
Treasury nor IRS provided the number of eligible individuals and families who are still awaiting
their payments. While EIPs have been provided automatically to Americans who filed tax
returns in 2018 or 2019 or participate in certain federal benefit programs, according to one
estimate, 12 million Americans do not meet either criterion for automatic payment and are
therefore likely still waiting. Non-filers generally include individuals with incomes of $12,200
or less per year, or $24,400 or less for married couples. 3 The pandemic has widened existing
1
Center on Budget and Policy Priorities, Aggressive State Outreach Can Help Reach the 12 Million Non-
Filers Eligible for EIPs, (June 23, 2020) (online at www.cbpp.org/research/federal-tax/aggressive-state-outreach-
can-help-reach-the-12-million-non-filers-eligible-for).
2
Department of the Treasury, Press Release: Treasury, IRS Announce Delivery of 159 Million Economic
Impact Payments, (June 3, 2020) (online at https://home.treasury.gov/news/press-releases/sm1025).
3
Center on Budget and Policy Priorities, Aggressive State Outreach Can Help Reach the 12 Million Non-
Filers Eligible for EIPs, (June 23, 2020) (online at www.cbpp.org/research/federal-tax/aggressive-state-outreach-
can-help-reach-the-12-million-non-filers-eligible-for).
The Honorable Steven T. Mnuchin
The Honorable Charles P. Rettig
Page 2
inequalities, and those with the lowest incomes have the most acute and urgent need for direct
federal support.
The National Taxpayer Advocate (NTA)—an independent watchdog within the IRS—has
also raised these concerns. In a report last month, the NTA explained that many individuals
“have either not received the full EIP amount to which they are entitled or received an EIP at
all.” The report warned that without further action from IRS, many individuals would need to
wait until 2021 to receive their EIP payment. The NTA concluded:
Because these individuals are likely experiencing financial distress now, the National
Taxpayer Advocate recommends the IRS continue to work on solutions and alternatives
to ensure that all individuals receive the EIP in its entirety in 2020 rather than having to
wait until 2021 when they file their 2020 income tax returns. 4
Treasury and IRS have indicated that EIPs have been delivered to Americans by direct
deposit, checks, and prepaid debit cards. Your agencies recently announced that they would
deliver an EIP debit card by mail to approximately 4 million eligible recipients. 5 However,
reports have identified significant problems with the delivery of EIPs, including multiple
payments sent to a single recipient, 6 failures to include the correct payments for qualified
dependent children, 7 payments sent to incorrect bank accounts, 8 recipients unable to have
payments electronically deposited into their accounts, 9 and payments sent to deceased
individuals. 10 Recent reports also indicate some EIP recipients may be throwing away EIP debit
4
Taxpayer Advocate Service, Reducing Burden Resulting From the Implementation of the Coronavirus
Aid, Relief, and Economic Security (CARES) Act (June 2020) (online at
https://taxpayeradvocate.irs.gov/Media/Default/Documents/2021-JRC/JRC21_SAO_03.pdf).
5
Department of the Treasury, Press Release: Treasury is Delivering Millions of Economic Impact
Payments by Prepaid Debit Card (May 18, 2020) (online at https://home.treasury.gov/news/press-releases/sm1012).
6
I Received Two $1,200 Stimulus Payments. One Was Direct Deposit and the Other Was a Paper Check
— I Cashed the Check, MarketWatch (May 19, 2020) (online at www.marketwatch.com/story/i-received-two-1200-
stimulus-payments-one-was-direct-deposit-and-the-other-was-a-paper-check-i-cashed-the-check-2020-05-11).
7
One Child, Two Stimulus Payments: The Weird Way Divorced Families Are Double-Dipping Without
Even Trying, Washington Post (May 20, 2020) (online at www.washingtonpost.com/business/2020/05/12/one-child-
two-stimulus-payments-weird-way-divorced-families-are-double-dipping-without-even-trying/); If You’re One of
These American Taxpayers, the Deadline to File for a $500-Per-Child Stimulus Check has Passed, Washington Post
(Apr. 22, 2020) (online at www.washingtonpost.com/business/2020/04/20/if-youre-one-these-american-taxpayers-
you-have-until-noon-wednesday-file-500-per-child-stimulus-check/).
8
‘Where Is My Money?’: Frustrated Americans Left Waiting for Stimulus Payments as IRS Sends Funds to
Wrong Accounts Amid COVID-19 Pandemic, ABC11 (Apr. 23, 2020) (online at www.abc11.com/coronavirus-us-
2020-stimulus-checks-irs-sends-money-to-wrong-account-where-is-my-payment/6124633/).
9
Stimulus check glitches: Why You’re Having Trouble and What You Can Do About It, Washington Post
(April 18, 2020) (online at www.washingtonpost.com/business/2020/04/18/stimulus-check-glitches-why-youre-
having-trouble-what-you-can-do-about-it/); A Timeline of IRS Stimulus Payment Glitches, Washington Post (May 4,
2020) (online at www.washingtonpost.com/business/2020/05/04/timeline-irs-stimulus-payment-glitches/).
10
Government Accountability Office, COVID-19: Opportunities to Improve Federal Response and
Recovery Efforts (June 2020) (online at www.gao.gov/assets/710/707839.pdf). The National Taxpayer Advocate
The Honorable Steven T. Mnuchin
The Honorable Charles P. Rettig
Page 3
cards received in the mail because the envelopes resemble junk mail or scams instead of official
government mail. 11
In light of these concerns, we request that you provide the following information by July
22, 2020. These requests are consistent with House Resolution 935, which established the Select
Subcommittee on the Coronavirus Crisis “to conduct a full and complete investigation” of
“issues related to the coronavirus crisis,” including the “efficiency, effectiveness, equity, and
transparency of the use of taxpayer funds and relief programs to address the coronavirus crisis.”
1. What is the current total number of EIPs and total dollar amount that has been
delivered to recipients, and what is the total number of EIPs and dollar amount that
has not been delivered and is still outstanding? For both categories, please provide:
a. a breakdown by income bracket and EIP category (including Social
Security retirement, disability (SSDI), survivor benefits, supplemental
security income (SSI), Railroad Retirement benefits, or Veterans Affairs
Compensation and Pension (C&P) benefits); and
b. a breakdown by state.
2. Please describe in detail the steps taken, and any additional steps planned, to
inform potentially eligible non-filers about how to get their EIPs, including but
not limited to efforts to reach non-filers without access to the Internet at home and
without access to public computers due to the pandemic?
3. What is your anticipated schedule to complete payment of EIPs to all eligible
recipients?
4. Of the EIP payments that have been sent out:
a. How many recipients have accessed the EIP funds, e.g., received
them via Electronic Funds Transfer in a bank account they could
access, cashed their check, or used their debit card? How many
recipients have not accessed the EIP funds?
b. What is the total amount of funds that have been accessed? What
is the total amount of funds that have not been accessed?
c. For the EIP payments that have not been cashed, deposited, or
has explained that, in light of ambiguous IRS guidance issued to taxpayers, “if the IRS made the payment despite
having information in its possession that the individual was in fact deceased, the National Taxpayer Advocate
recommends the IRS not spend its resources pursuing enforcement actions against a decedent’s estate or a family
member who received.” National Taxpayer Advocate, Objectives Report to Congress, Fiscal Year 2021 (June 2020)
(online at https://taxpayeradvocate.irs.gov/Media/Default/Documents/2021-JRC/JRC21_FullReport.pdf).
11
People Are Mistaking Stimulus Payments for Junk Mail or a Scam, Washington Post (May 28, 2020)
(online at www.washingtonpost.com/business/2020/05/28/people-are-mistaking-stimulus-payments-junk-mail-or-
scam/).
The Honorable Steven T. Mnuchin
The Honorable Charles P. Rettig
Page 4
returned, please provide a breakdown by method of transmittal
(Electronic Funds Transfer, check and debit card).
5. With respect to EIP debit cards that have been mailed:
a. How many have been activated? How many have not been activated?
b. How many have been reported as lost, misplaced, or stolen and been the
subject of a replacement request?
6. How many people have used the “Non-Filers: Enter Payment Info Here” tool 12 to
collect their EIP?
a. For people who have used the “Non-Filers: Enter Payment Info Here”
tool to collect their EIP, how many have been blocked or required to
submit an amended or paper return in order to access their Earned Income
Tax Credit?
7. Please provide a detailed description of any significant scams or frauds you have
identified related to EIPs and the steps you are taking to address them.
An attachment to this letter provides additional instructions for responding to the Select
Subcommittee’s request. If you have any questions regarding this request, please contact Select
Subcommittee staff at (202) 225-4400.
Sincerely,
_________________________
James E. Clyburn
Chairman
Enclosure
cc: The Honorable Steve Scalise, Ranking Member
12
Internal Revenue Service, Nonfilers: Enter Payment Info Here (online at www.irs.gov/coronavirus/non-
filers-enter-payment-info-here).
Responding to Oversight Committee Document Requests
1. In complying with this request, produce all responsive documents that are in your
possession, custody, or control, whether held by you or your past or present agents,
employees, and representatives acting on your behalf. Produce all documents that you
have a legal right to obtain, that you have a right to copy, or to which you have access, as
well as documents that you have placed in the temporary possession, custody, or control
of any third party.
2. Requested documents, and all documents reasonably related to the requested documents,
should not be destroyed, altered, removed, transferred, or otherwise made inaccessible to
the Committee.
3. In the event that any entity, organization, or individual denoted in this request is or has
been known by any name other than that herein denoted, the request shall be read also to
include that alternative identification.
4. The Committee’s preference is to receive documents in electronic form (i.e., CD,
memory stick, thumb drive, or secure file transfer) in lieu of paper productions.
5. Documents produced in electronic format should be organized, identified, and indexed
electronically.
6. Electronic document productions should be prepared according to the following
standards:
a. The production should consist of single page Tagged Image File (“TIF”), files
accompanied by a Concordance-format load file, an Opticon reference file, and a
file defining the fields and character lengths of the load file.
b. Document numbers in the load file should match document Bates numbers and
TIF file names.
c. If the production is completed through a series of multiple partial productions,
field names and file order in all load files should match.
d. All electronic documents produced to the Committee should include the following
fields of metadata specific to each document, and no modifications should be
made to the original metadata:
BEGDOC, ENDDOC, TEXT, BEGATTACH, ENDATTACH, PAGECOUNT,
CUSTODIAN, RECORDTYPE, DATE, TIME, SENTDATE, SENTTIME,
BEGINDATE, BEGINTIME, ENDDATE, ENDTIME, AUTHOR, FROM, CC,
TO, BCC, SUBJECT, TITLE, FILENAME, FILEEXT, FILESIZE,
DATECREATED, TIMECREATED, DATELASTMOD, TIMELASTMOD,
INTMSGID, INTMSGHEADER, NATIVELINK, INTFILPATH, EXCEPTION,
BEGATTACH.
7. Documents produced to the Committee should include an index describing the contents
of the production. To the extent more than one CD, hard drive, memory stick, thumb
drive, zip file, box, or folder is produced, each should contain an index describing its
contents.
8. Documents produced in response to this request shall be produced together with copies of
file labels, dividers, or identifying markers with which they were associated when the
request was served.
9. When you produce documents, you should identify the paragraph(s) or request(s) in the
Committee’s letter to which the documents respond.
10. The fact that any other person or entity also possesses non-identical or identical copies of
the same documents shall not be a basis to withhold any information.
11. The pendency of or potential for litigation shall not be a basis to withhold any
information.
12. In accordance with 5 U.S.C.§ 552(d), the Freedom of Information Act (FOIA) and any
statutory exemptions to FOIA shall not be a basis for withholding any information.
13. Pursuant to 5 U.S.C. § 552a(b)(9), the Privacy Act shall not be a basis for withholding
information.
14. If compliance with the request cannot be made in full by the specified return date,
compliance shall be made to the extent possible by that date. An explanation of why full
compliance is not possible shall be provided along with any partial production.
15. In the event that a document is withheld on the basis of privilege, provide a privilege log
containing the following information concerning any such document: (a) every privilege
asserted; (b) the type of document; (c) the general subject matter; (d) the date, author,
addressee, and any other recipient(s); (e) the relationship of the author and addressee to
each other; and (f) the basis for the privilege(s) asserted.
16. If any document responsive to this request was, but no longer is, in your possession,
custody, or control, identify the document (by date, author, subject, and recipients), and
explain the circumstances under which the document ceased to be in your possession,
custody, or control.
17. If a date or other descriptive detail set forth in this request referring to a document is
inaccurate, but the actual date or other descriptive detail is known to you or is otherwise
apparent from the context of the request, produce all documents that would be responsive
as if the date or other descriptive detail were correct.
2
18. This request is continuing in nature and applies to any newly-discovered information.
Any record, document, compilation of data, or information not produced because it has
not been located or discovered by the return date shall be produced immediately upon
subsequent location or discovery.
19. All documents shall be Bates-stamped sequentially and produced sequentially.
20. Two sets of each production shall be delivered, one set to the Majority Staff and one set
to the Minority Staff. When documents are produced to the Committee, production sets
shall be delivered to the Majority Staff in Room 2157 of the Rayburn House Office
Building and the Minority Staff in Room 2105 of the Rayburn House Office Building.
21. Upon completion of the production, submit a written certification, signed by you or your
counsel, stating that: (1) a diligent search has been completed of all documents in your
possession, custody, or control that reasonably could contain responsive documents; and
(2) all documents located during the search that are responsive have been produced to the
Committee.
Definitions
1. The term “document” means any written, recorded, or graphic matter of any nature
whatsoever, regardless of how recorded, and whether original or copy, including, but not
limited to, the following: memoranda, reports, expense reports, books, manuals,
instructions, financial reports, data, working papers, records, notes, letters, notices,
confirmations, telegrams, receipts, appraisals, pamphlets, magazines, newspapers,
prospectuses, communications, electronic mail (email), contracts, cables, notations of any
type of conversation, telephone call, meeting or other inter-office or intra-office
communication, bulletins, printed matter, computer printouts, teletypes, invoices,
transcripts, diaries, analyses, returns, summaries, minutes, bills, accounts, estimates,
projections, comparisons, messages, correspondence, press releases, circulars, financial
statements, reviews, opinions, offers, studies and investigations, questionnaires and
surveys, and work sheets (and all drafts, preliminary versions, alterations, modifications,
revisions, changes, and amendments of any of the foregoing, as well as any attachments
or appendices thereto), and graphic or oral records or representations of any kind
(including without limitation, photographs, charts, graphs, microfiche, microfilm,
videotape, recordings and motion pictures), and electronic, mechanical, and electric
records or representations of any kind (including, without limitation, tapes, cassettes,
disks, and recordings) and other written, printed, typed, or other graphic or recorded
matter of any kind or nature, however produced or reproduced, and whether preserved in
writing, film, tape, disk, videotape, or otherwise. A document bearing any notation not a
part of the original text is to be considered a separate document. A draft or non-identical
copy is a separate document within the meaning of this term.
2. The term “communication” means each manner or means of disclosure or exchange of
information, regardless of means utilized, whether oral, electronic, by document or
otherwise, and whether in a meeting, by telephone, facsimile, mail, releases, electronic
3
message including email (desktop or mobile device), text message, instant message,
MMS or SMS message, message application, or otherwise.
3. The terms “and” and “or” shall be construed broadly and either conjunctively or
disjunctively to bring within the scope of this request any information that might
otherwise be construed to be outside its scope. The singular includes plural number, and
vice versa. The masculine includes the feminine and neutral genders.
4. The term “including” shall be construed broadly to mean “including, but not limited to.”
5. The term “Company” means the named legal entity as well as any units, firms,
partnerships, associations, corporations, limited liability companies, trusts, subsidiaries,
affiliates, divisions, departments, branches, joint ventures, proprietorships, syndicates, or
other legal, business or government entities over which the named legal entity exercises
control or in which the named entity has any ownership whatsoever.
6. The term “identify,” when used in a question about individuals, means to provide the
following information: (a) the individual’s complete name and title; (b) the
individual’s business or personal address and phone number; and (c) any and all
known aliases.
7. The term “related to” or “referring or relating to,” with respect to any given subject,
means anything that constitutes, contains, embodies, reflects, identifies, states, refers to,
deals with, or is pertinent to that subject in any manner whatsoever.
8. The term “employee” means any past or present agent, borrowed employee, casual
employee, consultant, contractor, de facto employee, detailee, fellow, independent
contractor, intern, joint adventurer, loaned employee, officer, part-time employee,
permanent employee, provisional employee, special government employee,
subcontractor, or any other type of service provider.
9. The term “individual” means all natural persons and all persons or entities acting on
their behalf.
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