Decedent EIP Checks - May 6 Update

[BobKamman]

This was posted earlier to a thread that is now 2 pages long, so I'm hoping we can start a new thread.

IRS added this to its Q&A page, but if you go there you won't find it by searching for "decedent."  You have to look for the May 6 update.

Q10. Does someone who has died qualify for the Payment? (added May 6, 2020)

A10. No. A Payment made to someone who died before receipt of the Payment should be returned to the IRS by following the instructions about repayments. Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000. 

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

As media reports have pointed out, there is no indication of whether or how they will enforce this.  For many needy widows who get the money on April 15, it has already been spent -- maybe to pay off the credit card used for the funeral.

You know this has Stupid written all over it because they are hoping to get back money from 2020 decedents.  The tax credit is clearly for anyone filing a 2020 return -- even those who make $300K a year will qualify if the income ended in March when they did. 

IRS obviously knew who was dead when they sent the money, because the checks have Decd on them.  I'm not telling any clients to send back any money, or return any checks, until we have something better than this "guidance."

[qbteachmt]

"I'm not telling any clients to send back any money, or return any checks, until we have something better than this "guidance.""

Which would be Q41:

"A41. You should return the payment as described below.

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 below.
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.

For your paper check, here are the IRS mailing addresses to use based on the state:"

Look here in your topic linked:

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

[BobKamman]

That's our IRS -- they not only tell us to jump, but they tell us how high!