IRS tax agency may need months to put cash into Americans’ hands

by Battletoad101

For the bears, information taken from the link. Context: The IRS is being relied upon to process 500 billion dollars ASAP.

In 2001, the IRS needed more than six weeks to issue the first rebates authorized by President George W. Bush’s tax cut. In 2008, the IRS issued its first payments to fight the Great Recession nearly three months after Bush signed off on them. Being that the payments are not immediate, the growing economic strain surrounding the current pandemic and other underlying issues will outweigh the stimulus. IF Trump literally opens up the country and the pandemic exponentially INCREASES, the economic fallout may be even greater than the current dire situation.

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“I don’t think any of the policymakers have given any thought to the practical implications of actually doing this. The IRS doesn’t have the resources to do it,”

The agency also needs find a way to staff their processing centres during a time when everyone needs to stay at home (the agency closed its 300+ in person assistance centres)

Currently there are 73,550 employees at the IRS, and with over a hundred million Americans looking to receive the financial stimulus, that equals to a 1:1360 employee to applicant ratio. And do know that before the IRS issues payments, agents will have to calculate the amount based on income and family status, and may not have current bank information for direct deposits or current addresses to mail out physical checks.

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link: Basically read this for a bit more information I left out if you are bothered.

TLDR: IRS still uses the same 1960s computers, fewer workers and little budget to operate since the GFC. Stimulus payments are gonna at least take a while to get into the working people’s hands = confirmed bull trap > same short term panic = puts.

But you might soon start to worry about the US dollar or inflation as the current leadership in the US is top notch. BRRRRRRR


Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.