Frequently Searched

Academic Transparency

Civil Forfeiture

Critical Race Theory

Right to Try

School Choice

An Epic IRS Fail Leaves Millions of Americans Waiting for Relief

January 7, 2021
by Mike Brownfield

Through no fault of their own, millions of Americans have been sidelined in the COVID-19 crisis, unable to work due to government restrictions, as they wait for the pandemic to end. Now, the very same government agency that penalizes Americans for not paying taxes on time has failed to send COVID relief payments, as required under the law.

In late December, Congress passed legislation that included payments of $600 to individuals, $1,200 to couples, and another $600 per child, provided recipients meet income eligibility requirements. Those payments were supposed to be delivered by the Internal Revenue Service (IRS) through direct deposit. And that’s where things went wrong.

As the IRS acknowledged, it mistakenly sent millions of those payments to closed or inactive accounts and chalked it up to the speed with which it had to issue the second round of payments:

“Because of the speed at which IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active. By law, the financial institution must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active.”

In response to the question of whether Americans will receive those payments, the IRS only had this to say: “Maybe.”

“Maybe” is an unacceptable answer to those millions of Americans who are waiting for the government to provide some modicum of relief amid the economic shutdown that many state governments have imposed in response to the COVID-19 crisis. Unfortunately, it’s a painful reminder of government incompetence — and it should be a cautionary warning against expanding the IRS’s role to that of tax preparer, collector, and auditor, as some have advocated.

 

 

More on this issue

Donate Now

Help all Americans live freer, happier lives. Join the Goldwater Institute as we defend and strengthen freedom in all 50 states.

Donate Now

Since 1988, the Goldwater Institute has been in the liberty business — defending and promoting freedom, and achieving more than 400 victories in all 50 states. Donate today to help support our mission.

We Protect Your Rights

Our attorneys defend individual rights and protect those who cannot protect themselves.

Need Help? Submit a case.
Join our pro-bono attorney network.

Get Connected to Goldwater

Sign up for the latest news, event updates, and more.

Wait! Don’t close this yet!

We are grateful for your support of the Goldwater Institute’s efforts to advance and defend liberty throughout the United States. For over 36 years, we’ve been defending the rights of Americans to live their lives free from government interference.

And Goldwater is unique in that we direct our efforts to the 50 states where we introduce and advance innovative ideas that expand freedom. And we fight in courtrooms and capitals nationwide to defend individual liberty.

In 2024 alone, we scored over 50 policy and litigation victories defending liberty!

And that’s just the beginning.

Our plans for 2025 include:

  • Stopping pernicious DEI and other woke programs in America’s universities.
  • Ensuring that patients suffering from rare and terminal diseases have access to cutting-edge, lifesaving medical treatments, without having to first seek permission from the government.
  • Defending parental rights across the United States so that parents can send their kids to the school that best fits their needs, free from leftist indoctrination.
  • Eliminating government interference in the fundamental right of individuals to own property and use it as they see fit.
  • And much, much more

We seek to restore the presumption of liberty; that people are free to act without first asking permission from the government.

But we cannot do this without you. Will you join us as we fight to preserve and advance liberty throughout the country? As we seek new and innovative ways to defend freedom in all 50 states?

And there’s great news: Thanks to a generous Goldwater supporter, your donation today will be doubled!

So please, join us in fighting to advance liberty and score real wins for freedom from coast to coast!

Donate Now