Stimulus Payments of Deceased Recipients Must Be Returned
The U.S. Treasury Department did an about face last week. Less than a week ago, a department spokesperson said it would not seek return of stimulus payments sent to deceased taxpayers. Now, it appears the U.S. Treasury will require people whose deceased relatives received stimulus payments to return the money to the federal government.
The system used for determining who was to receive stimulus payments was flawed from the start! The IRS was pulling from 2018 data as well as 2019 and 2020. Evidently, the IRS failed to incorporate a vetting process for old data to determine who was still alive or dead. So dead people were receiving payments.
On May 5, 2020, the IRS issued guidelines in an FAQ posted to its website with instructions on how to return a stimulus check issued to a deceased person. See FAQ Numbers 10 and 41. Here’s a brief summary of the processes posted by the IRS:
If the payment was a paper check:
- Write “Void” in the endorsement section on the back of the check.
- Mail the voided Treasury check immediately to the appropriate IRS location listed below.
- Don’t staple, bend, or paper clip the check.
- Include a note stating the reason for returning the check.
If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
- Write on the check/money order made payable to “U.S. Treasury” and write 2020EIP, and the taxpayer identification number (social security number, or individual taxpayer identification number) of the recipient of the check.
- Include a brief explanation of the reason for returning the EIP.
- For those deceased who were residents of Florida at the time of death, the address to return the funds is as follows:
Austin Refund Inquiry Unit
3651 S Interregional Hwy 35
Mail Stop 6542
Austin, TX 78741