Warning about the Surge of Coronavirus-related scams

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The Internal Revenue Service today urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft.

“We urge people to take extra care during this period. The IRS isn’t going to call you asking to verify or provide your financial information so you can get an economic impact payment or your refund faster,” said IRS Commissioner Chuck Rettig. “That also applies to surprise emails that appear to be coming from the IRS. Remember, don’t open them or click on attachments or links. Go to IRS.gov for the most up-to-date information.”

Taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information.

“History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need,” said IRS Criminal Investigation Chief Don Fort. “While you are waiting to hear about your economic impact payment, criminals are working hard to trick you into getting their hands on it. The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant.”

Don’t fall prey to Coronavirus tricks; retirees among potential targets

The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns. Those taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information online to a newly designed secure portal on IRS.gov in mid-April. If the IRS does not have a taxpayer’s direct deposit information, a check will be mailed to the address on file. Taxpayers should not provide their direct deposit or other banking information for others to input on their behalf into the secure portal.

The IRS also reminds retirees who don’t normally have a requirement to file a tax return that no action on their part is needed to receive their $1,200 economic impact payment. Seniors should be especially careful during this period. The IRS reminds retirees – including recipients of Forms SSA-1099 and RRB-1099 − that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment, also sometimes referred to as rebates or stimulus payments. The IRS is sending these $1,200 payments automatically to retirees – no additional action or information is needed on their part to receive this.

The IRS reminds taxpayers that scammers may:

  • Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is economic impact payment.
  • Ask the taxpayer to sign over their economic impact payment check to them.
  • Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
  • Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
  • Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.

Reporting Coronavirus-related or other phishing attempts

Those who receive unsolicited emails, text messages or social media attempts to gather the information that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to phishing@irs.gov.

Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.

Covid-19 UPDATE: Get A $2,000 Stimulus Check Every Month

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As millions of Americans receive their $1,200 stimulus check today, a new proposal would give you $2,000 a month during the Coronavirus pandemic.

Here’s what you need to know.

Proposal: New Legislation

Two House Democrats want to enhance the $2.2 trillion stimulus package known as the CARES Act. Representatives Tim Ryan (D-OH) and Ro Khanna (D-CA) have introduced new congressional legislation — the Emergency Money for the People Act — to provide $2,000 per month to Americans who have been impacted by the COVID-19 pandemic. Under their proposed legislation, the congressmen would continue monthly cash payments to eligible Americans until employment returns to pre-COVID-19 levels. “A one-time, twelve hundred dollar check isn’t going to cut it,” Rep. Khanna said. “Americans need sustained cash infusions for the duration of this crisis in order to come out on the other side alive, healthy, and ready to get back to work.”

How It Would Work

The Emergency Money for the People Act would work like this:

  • Eligible Americans would receive $2,000 in cash per month guaranteed for at least six months.
  • These monthly cash payments would continue until the employment to population ratio for people ages 16 and older is greater than 60%.
  • The monthly cash payments would not count as income.
  • The monthly cash payments would not adversely impact anyone’s ability to qualify for an income-based federal or state assistance program.

Who’s Eligible

As with the $1,200 stimulus check (Economic Impact Payment), not every American would be eligible. Here’s who would get a monthly cash payment under this proposed legislation:

  • Every American adult age 16 and older making less than $130,000 annually would receive $2,000 a month;
  • Married couples earning less than $260,000 would receive at least $4,000 per month;
  • Qualifying families with children will receive an additional $500 per child, with funds capped at a maximum of three children.

For example, if you earn $100,000 of adjusted gross income per year and are a single tax filer, you would receive $2,000 a month. If you are married with no children and earn a combined $180,000 a year, you would receive $4,000 a month. If you are married with two children and earn a combined $200,000 a year, you would receive $5,000 a month. If you are married with five children and earn a combined $200,000 a year, you would receive a maximum of $5,500 a month because the $500 per dependent payment is only available for three children.

What if you don’t earn income or are unemployed?

If you had no earnings, were unemployed or are currently unemployed, you would be eligible.

What if you were not eligible for a stimulus check based on your 2018 or 2019 tax return, but you will be eligible in 2020?

You can be eligible and would need to submit at least two consecutive months of paychecks to verify your income.

Will most college students and adults with disabilities be excluded from these monthly payments?

No. Unlike the CARES Act, the Emergency Money for the People Act would make eligible college students and adults with disabilities who are still claimed as a dependent. The individual would receive the monthly payment and their parent or guardian would receive the dependent credit.

Looking for your Stimulus Checks

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The House passed Friday, and President Donald Trump is expected to swiftly sign, a $2 trillion stimulus bill to address the dramatic economic crisis caused by the coronavirus pandemic.
Included are direct payments to many Americans, an unprecedented expansion in unemployment benefits and $350 billion in small business loans.
But while people need help immediately, it will still take time to get everything moving.
Here’s what you need to know:

DIRECT STIMULUS PAYMENTS

How much do I get on my Stimulus Check?

Individuals would be due up to $1,200 and couples would receive up to $2,400 — plus $500 per child.
But the payments would start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount would then be reduced by $5 for every additional $100 of adjusted gross income, and those making more than $99,000 would not receive anything.
The income thresholds would be doubled for couples.
Income would generally be based on one’s 2019 or 2018 tax returns. Those who made too much to qualify in those years, but see their income fall in 2020 would receive a tax credit when they file their return next year, according to the Senate Finance Committee.
And those who make more this year than last would not have to pay back any stimulus money they receive if they end up exceeding the thresholds. The payments would not be subject to tax, and those who owe back taxes would still get a check.

When will I receive my Stimulus Check Direct Deposit?

We don’t know how long it would take the IRS to send out all the money, but it would likely take weeks before the first payments start going out.
Treasury Secretary Steven Mnuchin said on Wednesday that the IRS would begin issuing payments within three weeks of the legislation being signed into law. The bill simply calls for payments to be made “as rapidly as possible.”
But experts say it could take longer. In 2001, it took six weeks for the IRS to start sending out rebate checks under a new tax cut, and in 2008, it took three months after a stimulus package was signed into law.
How do I get my money?
The money would likely be deposited directly into individuals’ bank accounts — as long as they’ve already authorized the IRS to send their tax refund that way over the past two years.
If not, the IRS would send out checks in the mail. For those that haven’t filed a 2019 or 2018 tax return, the IRS would rely on the information on file at the Social Security Administration, which keeps records on all Americans who have paid payroll taxes. It’s still possible that some people may fall through the cracks. On its website, the IRS says no sign-up would be needed to receive the money, but it’s possible the agency ends up offering further guidance.

UNEMPLOYMENT BENEFITS

How much do I get?
Jobless workers are poised to get an extra $600 a week on top of their state benefits for up to four months. It would significantly boost everyone’s regular state benefits, which range from about $200 to $550 a week, on average, depending on where you live.
Lawmakers also want to add up to 13 weeks of extended benefits, on top of state programs, which vary between up to 12 and 28 weeks.
Plus, more newly jobless Americans would receive checks. A new pandemic unemployment assistance program would expand eligibility to those who are unemployed, partially unemployed or unable to work because of the virus and don’t qualify for traditional benefits. This would include independent contractors, the self-employed and gig economy workers. The pandemic program benefits would mirror what’s available in one’s state.

When do I receive the money?
The timing would vary based on where you live, but likely several weeks at least.
Unemployment benefits are administered by states. They would have to reprogram their systems to account for Congress’ measures — of which there are a few, some more complicated to enact than others. Not helping matters is that many state unemployment agencies use antiquated technology.

Adding a $600 boost to everyone’s weekly check would be easier to accomplish, which is one reason why lawmakers designed the enhancement this way. During the Great Recession, the federal government temporarily increased benefits by $25 a week so this experience could help many states now, said Andrew Stettner, a senior fellow at The Century Foundation.
But Congress also wants to create a new pandemic unemployment assistance program, which would allow many more Americans to qualify for benefits. It’s modeled on the existing disaster unemployment assistance program, but only a few states have had to activate it in recent years, mainly because of hurricanes or floods.

All states would have to set up the pandemic program. So it would likely take even longer for jobless Americans who fall into this category to start receiving benefits, particularly in states that haven’t faced disasters recently.

All these federal changes come at a particularly tough time for states, which are being squeezed from both sides, said Rebecca Dixon, executive director of the National Employment Law Project. They are contending with a historic number of first-time filers, who are already overwhelming their online sites and call centers, forcing agencies to divert staff and boost technical capacity.

Plus, these agencies are operating at very low funding levels because of historically low unemployment rates.

SMALL BUSINESS LOANS

How much Stimulus is available?

The biggest provision for small business owners in the economic aid package is roughly $350 billion in new loans, at least a portion of which will be forgiven so long as the business continues to employ and pay its workers.
Business owners need to apply for the loans at a lender approved by the Small Business Administration. The forgiven amount would be equal to 8 weeks’ worth of payroll obligations (e.g., wages and benefits), plus rent or mortgage bills and utilities. And the forgiven debt would not be treated as taxable income to the owner.
How long will it take to get my Stimulus Check?
Normally SBA loans can take months, which many small businesses facing a cash crunch don’t have. To get the money out more quickly, the bill calls on Treasury and the Small Business Administration to expedite the loan process and approve more institutions to make the loans. It also loosens the rules normally governing SBA loans. For instance, borrowers do not need to issue a personal guarantee or provide collateral.
But SBA lenders themselves aren’t clear yet just how fast they can process the new loans, even though Treasury Secretary Steven Mnuchin has suggested publicly this week they can do so very quickly.
A joint letter from several banking and credit union associations this week urged the SBA to provide them with “clear and consistent” guidelines ASAP.
One non-bank direct SBA lender, Fountainhead, has been working for the past two weeks to streamline its own processes so that it will be able to process an application and close the new SBA loan in a matter of days, CEO Chris Hurn said. But lenders still need to know what documents and other reporting measures the SBA will require. Currently, Hurn noted, they have to upload a number of files on a borrower onto the SBA’s electronic system. With such an uptick in loans being issued, the chance for overload is real.

“There are some fundamental documents that I’m pretty sure the SBA is still going to want,” Hurn said. “To me, that’s going to be the bottleneck.”