Apr 22, 2020

How Did This Get Messed Up So Badly?

     From The Hill:
Two key Democrats are urging the Treasury Department to provide an "additional accommodation" for Social Security recipients who are unable to meet Wednesday's deadline to provide information to the IRS in order to quickly receive coronavirus rebates for their children.
"Given the importance of these payments at this critical time, we urge Treasury to consider all available options for paying these beneficiaries additional amounts owed this year," Reps. John Larson (D-Conn.) and Danny K. Davis (D-Ill.), senior Democrats on the House Ways and Means Committee, wrote in a letter Tuesday to Treasury Secretary Steven Mnuchin. ...
On Monday afternoon, the Treasury Department and IRS announced that if Social Security and railroad retirement beneficiaries want to get the payments for their children added to their automatic payments, they need to use an IRS web tool to provide the agency with their information by noon EDT on Wednesday. Recipients of SSI and veterans benefits have a little more time to submit their dependent information.
The recipients of federal benefits who don't promptly provide the IRS with information about their children will receive a payment in the near future of $1,200 and won't be able to receive the additional amounts for their children until they file their 2020 tax returns next year, the IRS said. The agency said that it would have to wait to issue the additional payments until a 2020 return is filed "by law."
Larson and Davis, who both are chairmen of Ways and Means subcommittees, said they appreciated that Treasury wants to quickly make payments to Social Security and railroad retirement recipients but expressed concerns about the fact that the IRS announced the deadline less than 48 hours before it occurs.  ...
     I hate to say it but I wish that the Social Security Administration had been given the task of making these payments. I'm pretty sure  SSA could be doing it better.

4 comments:

Anonymous said...

Yeah, SSA is a better choice for three reasons.

Combing through identification information of a huge number of individuals takes a lot of work hours and infrastructure. The IRS actually is not all that large, SSA is.

This also started in the middle of tax season, and with the shifting of the tax date, that means it is still the middle of tax season. What resources the IRS had, likely was and is still being spent dealing with tax filings.

Finally, SSA is set up to deal with combing through a variety of identification information. The IRS is set up to deal with tax forms. It's just not the same environment.

Anonymous said...

Yeah, SSA has an abundance of free time to take on this action too.

Anonymous said...

If SSA is paying DI dependent benefits (at the same addresses or into the same accounts as those of the primary beneficiaries) why can't this information be provided to the IRS for paying the $500 rebate for children as well?

Anonymous said...

Sadly, I agree the SSA would be doing better. But they also could do better all the way around.