Please Return to the IRS - Stimulus Payments Made to a Decedent Must be Returned

The IRS wants their money back!

In a prior article, https://www.floridalegalcounsel.com/post/coronavirus-economic-impact-payments-faqs we discussed Coronavirus economic impact payments that were being sent to deceased taxpayers that have died subsequent to the filing of their last tax return. At that time, the IRS had not issued guidance as to whether the decedent actually qualified for the economic stimulus payment. The IRS has now issued guidance, making it clear - deceased taxpayers are not entitled to the economic stimulus payment.

Specifically, the IRS wants all economic stimulus payments returned for anyone who died before receipt of the payment. Arguably, this seems to be a somewhat arbitrary time frame considering the problems and delays the IRS has encountered in sending out the stimulus checks.

If the stimulus payment was made to joint filers and one spouse had not died before receipt of the Payment, you only need to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless the adjusted gross income exceeded $150,000. 

If you have a stimulus payment that needs to be returned, the IRS has provided the following instructions:

If the payment was a paper check:

1. Write "Void" in the endorsement section on the back of the check.

2. Mail the voided Treasury check immediately to the appropriate IRS location listed below.

3. Don't staple, bend, or paper clip the check.

4. 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:

1. Submit a personal check, money order, etc., immediately to the appropriate IRS location listed.

2. 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.

3. Include a brief explanation of the reason for returning the EIP.

Not sure whether you need to return a portion of your economic stimulus payment? Contact Florida Legal Counsel today!

#IRS Economic Stimulus Check

#Coronavirus Stimulus Check

#IRS Tax Attorney