New round of EIPs starts today

The IRS said it will begin distributing the third round of Economic Impact Payments today, with an effective entry date of this Wednesday, March 17.

Background: President Joe Biden on Thursday signed into law the $1.9 trillion American Rescue Plan Act, which includes a third round of EIPs of up to $1,400 per eligible recipient.

Garnishment: Under the newly enacted law, these payments are not exempt from garnishment, unlike previous EIPs. While ICBA and other groups have urged Congress to quickly pass standalone legislation to protect the payments from garnishment, banks are legally required to act on any garnishment order, which could raise difficult questions from customers.

Value: The government has not provided information about the total value of payments. More information on volume, value, and payment dates for checks and prepaid cards is expected soon.

Payment Portal: The Get My Payment portal is expected to be reopened soon, but it will only allow recipients to check their payment status. Recipients will not be allowed to provide new bank account information.

Entry Descriptions: Treasury's Bureau of the Fiscal Service released new company entry descriptions for EIP3 ACH payments. In a notice, it said financial institutions should be prepared to begin receiving EIPs with these new identifiers immediately.

Resources: ICBA offers frequently asked questions about the new round of payments on its PPP and EIP News page. The IRS's EIP page says information on the 2021 payments will be available soon.

More: ICBA also offers a summary of the American Rescue Plan Act, including provisions on the EIPs, supplemental unemployment insurance, aid to state and local governments, and more.