IT Hurdles at IRS May Defeat Effort to Ensure Full Virus Rebates

The IRS would need to overcome IT and programming hurdles to make sure Covid-19 relief payments claimed on tax returns aren’t directed to pay off outstanding tax debts, National Taxpayer Advocate Erin Collins said.

Congress approved direct economic impact payments of up to $1,200 in March and $600 in December—plus extra payments for dependents aged 16 and younger—which were structured as advances on a 2020 tax credit. Taxpayers who got less than the amount they were eligible to receive will be able to claim the extra money when they file their tax return.

Unless the IRS acts, those ...