Two congressional lawmakers who represent cental New York are urging the Internal Revenue Service to clarify the rules surrounding pandemic relief payments made through debit cards issued by the federal government. 

What You Need To Know


  • A bipartisan pair of lawmakers are seeking guidance for taxpayers on pandemic relief payments for debit cards.

  • Some taxpayers received the cards instead of a direct deposit.

  • Taxpayers may have inadvertently tossed the card out and a fee is required to replace it.

The lawmakers, Republican Rep. John Katko and Democratic Rep. Anthony Brindisi, are also calling on the IRS to waive fees associated with replacing the debit cards for people who accidentally threw them away.

The federal government issued the debit cards as part of a broader coronavirus pandemic relief package, with individuals receiving $1,200 and taxpayers who file jointly $2,400, along with more money for each child in a household.

The debit cards were issued for taxpayers who in many instances do not file their taxes electronically under the theory the cards would provide faster access to the money than a paper check sent in the mail. 

But the cards have created their own problems: Some people tossed the card out thinking it was junk mail. Other taxpayers found the money could be accessed but only after paying an ATM fee. 

Brindisi and Katko want the IRS to explain why the debit card payment was used and have the agency issue guidance to taxpayers in order for them to better verfiy the legitimacy of the cards. 

“In order to resolve these issues, we respectfully request the IRS explain the methodology behind determining which recipients receive EIPs in the form of a debit card, instead of a direct deposit or paper check," the lawmakers wrote.

"If the IRS intends to distribute remaining EIPs via debit card, we encourage the IRS to take steps to increase awareness of this payment method and issue guidance to taxpayers on how to verify the legitimacy of their debit cards.  Additionally, we ask the IRS to waive any and all fees related to the replacement of debit cards that have been lost or destroyed due to lack of information about the nature of these payments.  The IRS should review these processes and take necessary action to clarify this issue for taxpayers immediately.”