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As major banks begin issuing $ 1,400 renewable checks this month, the timing of government payments has raised concerns


The Internal Revenue Service has made 127 million payments worth about $ 325 billion, the organization said on Wednesday. But among those still awaiting payments are the estimated 30 million Social Security recipients, who have reached out to CBS MoneyWatch with concerns about delays.

The House Ways and Means Committee on Monday sent a letter to the IRS inquiring about the reported delays in sending payments to social workers, Veterans Affairs and the Railroad Retirement Board beneficiaries.

"Some of the most vulnerable seniors and people with disabilities, including veterans who have served our country with respect, are unable to pay for basic necessities while awaiting their timely payment," the legislature wrote to the council.

Their shaking seems to have paid off. Lawmakers on Thursday said they had received a notice from the SSA that the organization had sent payment details of 30 million recipients to the IRS that morning. The SSA confirmed the release of the payment information in a separate statement, adding that it should have made a "non-refundable agreement with the IRS because it did not receive a direct allocation through" the American Rescue Act of work not directly related to its plans or mandates.

First recipients

Among the first people to receive payments were those who banked at other small institutions, such as the first bank, Current. Some of those people received payments before March 12, or just one day after President Joe Biden signed the American Rescue Plan into law. That’s because those banks used their balance sheets to deposit money into customer accounts rather than waiting for the official payment date of March 17, set by the IRS.

Millions of customers at major banks such as JPMorgan Chase and Wells Fargo received their payments on March 17 or later, depending on when the IRS set a payment date. But in some cases, people may experience long delays in obtaining a promotional check, including people submitting paper tax forms. That is because the IRS supports payments on the most recent personal tax returns, while the agency also regularly supports the processing of paper forms as a result of the epidemic.

A year after the epidemic shut down the U.S. economy, millions of people continue to experience financial hardship. About 38% of people say that their family income is still affected by the crisis, according to a study by TransUnion, a financial services company.

That means a sharp decline from last year, when about six in 10 people say domestic income has been earned, but it continues to reflect the ongoing struggles facing many Americans, said Charlie Wise, head of global research and consultation at TransUnion.

"It's a material improvement, but it shows that more than a third of consumers continue to experience some form of financial impact," Wise told CBS MoneyWatch. "That's a big deal."

To be sure, not everyone is in a position to get a check to encourage them to suffer or lose their jobs, about 4 out of 10 people tell TransUnion that their income has not changed during the epidemic. They may be making money or spending money, reviving the U.S. economy.