Letter to Steven Mnuchin, Department of the Treasury Secretary, and Charles Rettig, Internal Revenue Service Commissioner - Leahy, Sanders And Welch Push IRS To Ensure All Eligible Vermonters Receive Stimulus Checks

Letter

Dear Secretary Mnuchin and Commissioner Rettig,

The U.S. Department of the Treasury and Internal Revenue Service (IRS) have been charged
with crucial responsibilities and we appreciate the enormous effort of all the workers at your
agencies to get out the Economic Impact Payments (EIPs) during this challenging time. While
tremendous work has been done, there is still a lot more work to do to ensure that every person
eligible for an EIP receives the full amount that they are owed in a timely fashion.

We are writing today because of the significant delays and confusion during the processing and
receipt of the EIPs. We continue to receive reports from Vermonters who have yet to receive
their EIPS after months of waiting, including Social Security beneficiaries. In addition, EIPs
delivered via prepaid debit cards are causing confusion for recipients and financial institutions
tasked with processing withdrawals from the debit cards. Adding to the delays and confusion is
the lack of clear and timely guidance to the public and Congressional offices who assist
constituents with obtaining their EIPs.

We recognize the tremendous challenge that sending out the EIPs represents, but our
constituents, some of whom may be homebound due to COVID 19 concerns, have waited
months for clarity and access to the EIPs. Social Security recipients, which include many
Americans most in need, were promised speedy delivery, yet many of them are still waiting for
their payment. Many Vermonters with internet access that have attempted to utilize the IRS Get
My Payment portal were met with repeated error messages or were provided with limited to no
information about their payment status. We request an update with clear guidance about when all
remaining Social Security recipients can expect their EIPs.

In late May, the IRS announced that it would speed up delivery by issuing prepaid debit cards.
Unfortunately, the rollout of these cards has caused a number of additional problems. There have
been reports of cards being thrown away because they are not clearly marked as important
documents, married couples with different last names have been misnamed on the cards, and the
amount of funds for withdrawal being limited by financial institutions. Additionally, the failure
of the IRS to coordinate this rollout with banks has led to circumstances where EIP recipients
could be charged a fee for attempting to deposit the payments. The potential fees are unfair
because those who received paper checks or direct deposits are not subject to these costs. We
request that you provide us with a summary of the process that was used to determine who was
selected to receive the debit cards and how the financial institution that processed the cards was
selected. This analysis should include any background in the consideration that recipients of
these debit cards could be subject to fees that others were not subject to.

The current guidance from the IRS is that any errors in EIP amounts will need to be corrected by
Vermonters when they file their 2020 tax returns. This is not acceptable given the immediate
need of many of our constituents. We urge you to change this approach and allow corrected
payments to be sent as soon as possible. Delaying benefits until 2021 will further impede the
ability of Vermonters to meet their basic needs and will continue to put pressure on already
strained resources.

Finally, while we have appreciated the direct engagement of the IRS with our offices, the
information available to the public and Congressional offices has been insufficient, confusing
and at times contradictory. EIP beneficiaries have been given tight deadlines with little notice
about adding direct deposit and dependent children information. Similarly, Congressional offices
have in many cases been unable to get clear and timely guidance to many constituent questions
about EIPs. We understand the IRS recently established a new casework email box for
Congressional offices but are alarmed by recent guidance that suggests that if a Congressional
office submits a case to the new casework line, the IRS will call the constituent back directly.
This is guidance could create real confusion given that past advice was that the IRS would not
call a person directly -- advice that was necessary because of the high number of scammers
purporting to be IRS agents. Please outline ways that your agencies will both improve outreach
and guidance for the public and Congressional offices. Please also explain the decision to have
the IRS contact constituents directly.

We thank you for your ongoing efforts to bolster the financial stability of Americans as they
experience the economic implications of this pandemic and urge you to provide the resources
included in the CARES Act quickly and equitably.

Source