Following reports of people accidentally throwing out stimulus payment cards thinking they were junk mail, the IRS said it will be waiving the penalty to replace them, reported Accounting Today. An email sent to tax professionals said that those who have lost or destroyed the prepaid debit card can request a free replacement through Metabank's customer service department, with the standard $7.50 fee waived for the first reissuance. The company will also increase the limit on automated clearing house transfers from $1,000 to $2,500 per transaction.

The IRS announced the use of prepaid debit cards for the Economic Impact Payments on May 27, saying, "The debit cards arrive in a plain envelope from 'Money Network Cardholder Services.'" According to the IRS, "nearly 4 million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of which taxpayers received a debit card was made by the Bureau of the Fiscal Service, a part of the Treasury Department that works with the IRS to handle distribution of the payments."

Unfortunately, as time went on, it became apparent that these payments very closely resembled junk mail, as the envelopes bore no indication they were from the federal government. As a result, many accidentally threw them in the trash or destroyed them, believing them no different than the myriad pieces of junk that darken mailboxes every day.

Those who wish to replace a lost stimulus payment card can find more information here.