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Time of India
21 hours ago
- Business
- Time of India
IRS Stimulus Checks Update: No new $1,390 payout this August, here's what taxpayers should know — Fact Check
Several reports circulating online claim that the IRS has approved $1,390 stimulus checks for eligible households to be distributed later this summer, describing them as tax-free payments aimed at supporting low- and middle-income families. However, these claims are false. Tired of too many ads? Remove Ads Rumors of IRS Stimulus Checks Go Viral No new IRS Stimulus Checks Approved for 2025 Tired of too many ads? Remove Ads The Legislation That Never Passed How Past Stimulus Checks Were Authorized 2008: The Economic Stimulus Act authorized direct payments during the Great Recession. The Economic Stimulus Act authorized direct payments during the Great Recession. 2020–2021: Three major pieces of legislation, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the COVID-related Tax Relief Act, and the American Rescue Plan Act, enabled direct payments during the COVID-19 pandemic. Recovery Rebate Credits Causing Confusion Treasury's Role in Past Stimulus Tired of too many ads? Remove Ads Why the Misinformation Spread Could More Stimulus Come? FAQs Has the IRS approved new stimulus checks for summer 2025? What is the latest IRS stimulus checks update? Rumors circulating online about new Internal Revenue Service (IRS) stimulus checks being issued this summer have been declared false by officials. Claims that taxpayers would soon receive $1,390 stimulus checks are not backed by any legislation or IRS confirmation. According to a fact-check report by The Associated Press, there is no new stimulus payment scheduled for distribution in the coming confusion stems from social media posts and misleading reports suggesting that the IRS had approved additional rounds of payments for low- and middle-income Americans. However, IRS officials have confirmed that no new economic impact payments are planned unless Congress passes fresh legislation, as mentioned in a report by Friday, several viral posts claimed that the IRS had approved $1,390 stimulus checks, sparking widespread speculation. The posts suggested the funds would reach taxpayers by the end of the these claims were swiftly refuted. The IRS clarified that any new round of economic impact payments, commonly known as stimulus checks, must be authorized through legislation. Neither the Senate nor the House has passed such a confirmed that there is no new IRS stimulus check update for 2025. Stimulus checks are not issued solely at the discretion of the IRS or the Treasury Department. They require Congressional approval, followed by Treasury's of the speculation appears linked to a proposal by Republican Senator Josh Hawley of Missouri. In July, he introduced the American Worker Rebate Act, which aimed to provide rebates funded by tariff revenues. The proposed amount included at least $600 per individual, with additional payments for the bill has not advanced. It has neither cleared the Senate nor the House. For now, it remains referred to the Senate Finance Committee with no immediate prospect of becoming law, as confirmed in a report by is important to note that past rounds of IRS stimulus checks eligibility were strictly tied to laws passed by Congress. For example:In each case, Congress enacted laws specifying the payment amounts, income thresholds, and distribution mechanisms. The Treasury Department and the IRS then executed the to the public's misunderstanding is the IRS's announcement earlier this year regarding the Recovery Rebate Credit . The agency distributed about $2.4 billion to taxpayers who had failed to claim credits from 2021. The maximum refundable amount was $1,400 per who had not filed their 2021 tax return were required to do so by April 15, 2025, to qualify. With that deadline long past, there are no new credits officials have reiterated that this one-time correction should not be mistaken for approval of new stimulus Treasury Department, along with its Bureau of the Fiscal Service, managed the distribution of previous payments. These included both pandemic relief checks and earlier stimulus programs during the 2008 Congressional approval, neither the Treasury nor the IRS has the authority to initiate new stimulus suggest that economic uncertainty, coupled with political rhetoric around tax rebates, created fertile ground for misinformation. Hawley's proposal, though not passed, may have been misrepresented online as already headlines referencing IRS refunds and delayed tax credits further contributed to the Taxpayers Should KnowFor now, there is no IRS approves stimulus checks announcement for 2025. Taxpayers are advised to rely only on official IRS releases and Treasury IRS maintains its updates on where verified information about credits, refunds, and other relief measures is no payments are scheduled, political proposals remain on the table. Hawley and other lawmakers have floated the idea of using tariff revenues or other federal funds for unless such bills pass through Congress, taxpayers should not expect any checks. As history has shown, economic impact payments are rare and tied to extraordinary circumstances like recessions or national viral claims, the reality is clear: no new IRS stimulus checks eligibility exists for summer 2025. The rumors are unfounded, and taxpayers should avoid misinformation circulating online. Unless Congress enacts new legislation, the IRS has no authority to distribute additional The IRS has confirmed that there are no new stimulus checks approved for this summer. Any such payments would require Congressional most recent update relates to the Recovery Rebate Credit from 2021, which allowed taxpayers to claim missed COVID-19 payments. That deadline expired on April 15, 2025, and no new credits or stimulus checks are available now.
Yahoo
15-07-2025
- Yahoo
Prison or payback? Judge weighs smartest sentence for Paycheck Protection Program fraud
A judge put a 34-year-old West Palm Beach man on 10 years of probation after he pleaded guilty to money laundering in a scheme through which he and co-conspirators obtained fraudulent federal Paycheck Protection Program loans totaling nearly $350,000. Johnley Jorcilien entered the plea during a hearing on July 14 before Circuit Judge Howard Coates. The judge ordered that Jorcilien pay civil restitution, and that he be placed on house arrest for the first year of his probation. State prosecutors dismissed a charge of organizing scheme to defraud a person or business of $50,000 or more. Jorcilien faced up to four years in prison. However, Assistant State Attorney Daniel Litman Gross told the court the state's top concern was ensuring that Jorcilien pays restitution. Coates credited Jorcilien with one day of time served in the Palm Beach County Jail and warned him that he risks going to prison if he fails to comply with the restitution order. Boynton Beach: Alleged gang shooting at anti-violence rally leads to arrest of man, 19 Congress passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security, or CARES, Act in March 2020. The stimulus bill was intended to help businesses cope with the economic problems caused by the COVID-19 pandemic. Part of the bill created the Paycheck Protection Program, a Small Business Administration-backed effort providing money to businesses with fewer than 300 employees for up to eight weeks of payroll, including benefits. The program attracted thousands of fraudulent applications before it ended in May 2021. By the end of 2022, the SBA inspector general estimated that more than 70,000 loans were potentially fraudulent or went to companies that didn't need the funding to survive the COVID-19 shutdowns. Few fraudulent loans have been repaid. Jorcilien's arrest happened through a joint effort between the State Attorney's Office and the Palm Beach County Sheriff's Office, which formed a task force in 2023 targeting people suspected of filing fraudulent federal claims. Investigators said Jorcilien fabricated information regarding his number of employees in order to obtain more than $347,000 in loans for an inactive used-car business. Jorcilien reportedly deposited the fraudulently obtained funds into various bank accounts and began writing checks worth thousands of dollars in kickbacks to his suspected co-conspirators. He also used the ill-gotten funds to purchase a luxury vehicle, investigators said. Julius Whigham II is a criminal justice and public safety reporter for The Palm Beach Post. You can reach him at jwhigham@ and follow him on X, the platform formerly known as Twitter, at @JuliusWhigham. Help support our work: Subscribe today. This article originally appeared on Palm Beach Post: Probation deal for Paycheck Protection fraud means man must repay US
American Press
11-07-2025
- Business
- American Press
Sulphur business owner found not guilty of stealing COVID funds
Jenilea Pena was found not guilty of stealing federal funds issued to small business owners during the COVID-19 pandemic. (Special to the American Press) A Sulphur woman accused of stealing nearly $100,000 in federal funds issued to small businesses during the COVID pandemic has been cleared of wrong doing. This week a unanimous jury found Jenilea Pena not guilty of wire fraud and making false statements to the government. Pena was one of three owners of Planet Nutrition in Sulphur, owning 25 percent of the business. An indictment filed in federal court on March 20, 2024, claimed Pena filed for a small business loan in 2020 through the Coronavirus Aid, Relief, and Economic Security (CARES) Act without the knowledge of the majority owner. According to the indictment, Pena was accused of using $97,000 of the loan for her own personal use and submitting a fictitious document signed by the majority owner. After a four-day trial, the jury returned a not guilty verdict late Thursday on both counts. Faced with the option to plead to a misdemeanor, 'Jenilea chose the harder path — the path of principle,' according to her attorney, Adam Johnson. 'She stood firm, confident that the truth would prevail. And it did.' Johnson said though Pena was falsely accused, 'she never lost faith in the process, in her integrity or in her God.' 'This verdict is more than a legal outcome,' Johnson said 'It is a restoration of reputation, a reaffirmation of character, and a reminder that justice — though sometimes delayed — is still possible. Jenilea and her family endured a long and painful chapter, but they did so with strength, grace and unwavering resolve.'
Yahoo
10-06-2025
- Business
- Yahoo
Raleigh County man pleads guilty to COVID-era business loan fraud
beckley – A Raleigh County man is awaiting sentencing in U.S. District Court after entering a guilty plea for theft of government money. United States Magistrate Judge Omar J. Aboulhosn presided over the hearing on June 2 in which Ross Jay Bailey, 50, of Cool Ridge, pleaded guilty to obtaining a $2 million loan through the Coronavirus Aid, Relief, and Economic Security Act for his business and then converting at least $1.4 million in funds to 'his personal enrichment,' states a news release from the U.S. Department of Justice. On or about June 30, 2020, Bailey obtained a $150,000 Economic Injury Disaster Loan for his business, R&R Delivery Service Inc. The CARES Act authorized the Small Business Administration to provide EIDL program loans of up to $2 million to eligible small businesses that were experiencing 'financial disruption due to the COVID-19 pandemic,' according to court documents and statements made in court 'Bailey successfully applied to increase the loan amount in August 2021 to $500,000 and in February 2022 to the $2 million maximum. Bailey certified that he would use all loans proceeds solely as working capital to alleviate economic injury caused by the pandemic,' states the news release. Court officials said Bailey admitted that he transferred at least $1.4 million of the EIDL proceeds from his business's bank account to his personal bank account from on or about March 1, 2022, through on or about May 31, 2022, as a condition of his guilty please. 'Bailey further admitted that he converted these funds into purchases of stock and cryptocurrency for his personal enrichment,' the release continues. Bailey is scheduled to be sentenced on Oct. 10 and faces a maximum penalty of 10 years in prison, up to three years of supervised release and a $250,000 fine. Bailey also owes at least $1.5 million in restitution, with a final amount to be determined by the Court. Acting United States Attorney Lisa G. Johnston commended the investigative work of the National Aeronautics and Space Administration Office of Inspector General, the US Secret Service, the West Virginia State Police-Bureau of Criminal Investigations and the West Virginia State Auditor's Office Public Integrity and Fraud Unit. Bailey's brother, Ryan Keith Bailey, 47, of Beaver, pleaded guilty on May 7 to theft of government money. Ryan Keith Bailey obtained $2,166,517.40 in loans through the CARES Act for his business and instead converted nearly all of the proceeds for his personal use. He is scheduled to be sentenced Sept. 12. Mark William Bailey, 52, of Beckley and a cousin of Ross Jay Bailey and Ryan Keith Bailey, pleaded guilty on Sept. 8, 2023, to theft of government money, after he admitted he stole approximately $451,237.51 in SBA loans he obtained through the CARES Act. On October 25, 2024, Mark William Bailey was sentenced to five years of federal probation, including one year on home detention, and paid $451,237.51 in restitution and an additional $451,237.98 as a civil penalty to settle False Claims Act allegations. NASA OIG is an active member of the Pandemic Response Accountability Committee Fraud Task Force, which was created to promote transparency and facilitate oversight of the federal government's COVID-19 pandemic response. The PRAC's 20 member Inspectors General identify risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, which includes funds awarded via the Paycheck Protection and EIDL programs. This case was also supported by the PRAC's Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations. Assistant United States Attorney Erik S. Goes is prosecuting the case. Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice's National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at
Yahoo
04-06-2025
- Business
- Yahoo
Ex-Hanford worker sentenced for COVID loan fraud for solar-powered wheelchair idea
A Kennewick man has been sentenced to a year and a day in prison after pleading guilty to conspiracy to commit wire fraud to obtain money through federal COVID-19 relief programs. David 'Kurt' Schneider, who wanted money to develop a solar-powered wheelchair, also is required to repay nearly $122,000 to the federal government. He was one of three people in the federal court case accused of fraudulently obtaining at least $292,000 in Coronavirus Aid, Relief and Economic Security Act, or CARES Act, funding in 2020 and 2021. Kelly Jo Driver, 43, of South Carolina, pleaded guilty to fraudulent claims and was sentenced to five years of probation but no incarceration after preparing falsified documents for Schneider and the owner of a Tri-Cities gun shop to submit with their loan applications. She also is jointly responsible with Schneider for repaying the money. Leif Gerard Larsen, the owner of Larsen Firearms in Pasco, has pleaded guilty to wire fraud and is scheduled to be sentenced July 30 in the Yakima County Courthouse. 'By stealing nearly $300,000 intended for legitimate businesses, these defendants diverted critical resources at a time when many businesses were fighting to survive,' said Rich Barker, the acting U.S. attorney for the Eastern District of Washington. The CARES Act was intended to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. The three defendants also applied for additional payments or loans of about $563,600, but those applications were rejected, according to court documents. They included Paycheck Protection Program loans to small businesses primarily to cover worker paychecks, which were eligible to be forgiven, with no money paid back. The program also offered low-interest Economic Injury Disaster loans Schneider applied for CARES Act loans for his businesses Solar Mobility, RealNZ Water and Tempest Tactical Solutions using documents created by Driver that falsified payroll information and federal tax forms to claim he had up to 10 employees. When Schneider was asked for bank records to confirm his payroll, he said that employees of Solar Mobility, his solar wheelchair company, had asked to be paid in cash during the pandemic. Schneider and Driver also falsely claimed that RealNZ Water, a company to sell water bottled in New Zealand, had 10 employees. The Washington Department of Revenue had no records of the company existing or reporting revenue and no wages were reported to the Washington state Employment Security Department, according to a court document. Court documents also said that his business Tempest Tactical Solutions had no business operations and had only been registered with the Washington State Secretary of State to apply for CARES Act money. The only revenue Schneider reported to the Department of Revenue in 2019 and 2020 were from his wages at a Hanford nuclear site job at the vitrification plant, according to a court document. Schneider was obsessed with the development of a solar wheelchair to be used by veterans, his attorney, Deric Orr, said in a court document. He sought a contract for his invention with the U.S. Department of Veterans Affairs, thinking it would make his solar wheelchair a major success and help veterans. But he came to believe the agency was sabotaging his efforts, according to court documents. Schneider saw the loan money he falsely obtained as a way to keep his business afloat and to fight back against the perceived sabotage, his attorney said. Driver provided false documents to both Schneider and Larsen for loan applications and then received 10% of the proceeds, according to court documents. She urged the other defendants in the case to seek higher loan amounts, which also would net her more money, according to court documents filed by Eastern District of Washington U.S. Attorney's Office. Driver's attorney, Jennifer Barnes, argued that she had no criminal record and had a noncancerous tumor that could soon require treatment. Barnes asked for no incarceration. Schneider told Larsen he also could obtain loans under the CARES Act, which could be forgiven, using false payroll documents created by Driver, according to court documents. He and Driver submitted applications falsely claiming he had 10 employees at Larsen Firearms and Larsen Gunsmithing & Firearms, according to court documents. He withdrew one application after being interviewed by federal agents. He received a loan of nearly $150,000 for the other application, according to court documents. Larsen is scheduled to be sentenced July 30 in the Yakima U.S. Courthouse. The case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force, the Federal Bureau of Investigation and the Small Business Administration Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Jeremy Kelley and Frieda Zimmerman. U.S. Judge Stanley Bastian in Yakima sentenced Schneider and Driver.
