Client received a 6475 Letter. However, they did NOT receive the stimulus

[catherine3]

My client received a letter saying that they were issued the 2021 EIP. However, they did not receive the payment. They believe it is because they have changed banks since the last time they received a federal tax refund. I have had other clients that say they did not get the EIP and then it turns out that they did. However, this person is very creditable and I believe them.

Should I file the return showing that they did not receive EIP 3 and wait for the fallout? Do I have any other options?

[IRonMaN]

Prepare the return showing they received the payment and then have them contact the IRS to see what happened to the payment 

[Just-Lisa-Now-]

Make the tax return match the letter, then file Form 3911 to trace where the payment went.

[rbynaker]

Start a payment trace:

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

I would file the return with the amount on the letter and then amend to claim RRC if the payment trace reveals that the payment was never received.

Edit: Got ninja'd twice!  That's what I get for looking up the URL before posting. 🙂

[Just-Lisa-Now- · Accepted solution]

you could actually try calling the EIPCard 800#, they may have sent a debit card, if so, you can get reissued right over the phone. It will tell you if they have record of it or not, if not, then use the 3911.

[BobKamman]

I agree with others, but that's not what I did.  I'm still not sure it was the better choice to believe my client and not the IRS computer, but I figured we could sort it out after April 18.  At least I still have a client who trusts me to trust him.  

What happens to direct deposits that, because of bank glitches, are returned to IRS? A transcript might show, and I doubt that a 3911 would work.  And does the IRS program for the 6475 notice include a check for returned payments?  Are you sure?  

This couple has two kids and the EIP would have been $5,600.  Maybe I should have been calling everyone last March and April to notify them of what to expect.  Next pandemic, I'll keep that in mind.  The potential harm here is that claiming it on the return will delay the $3,000+ refund they will get anyway.  But the interest rate on that is going up, and they don't seem to need the money right away.  

[BobKamman]

The Letter 6475 my client received says he was paid $2,100 for EIP#3.

He and his wife have filed joint returns forever, with no dependents. Their AGI hasn’t exceeded $150K forever.

When all else fails, ask the client. So I called him and when he finished dinner, he checked his bank account online. IRS deposited $2,800 to his account on March 17.

His wife did not receive a letter with a $700 amount. (Has anyone even seen anything like that?)

All those in favor of “don’t always trust the Letter 6475,” raise your hand,

[Just-Lisa-Now-]

I had one of these that didnt make sense just like this!