I have client passed away 01/06/20 and he received stimulus check. Can his kids deposit the check

[qbteachmt]

They should follow the IRS guideline for returning the money that isn't theirs.

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

[BobKamman]

They should decide whether they want to follow the law, or follow IRS instructions.

Couple of interesting tax stories today -- one is that about a billion dollars in EIP payments was sent to decedents, a drop in the bucket compared to the $100 billion of PPP loans that were left on the table. Another is that IRS will pay interest on refunds from April 15, even if returns are not filed until July 15.  Unless they change their minds about that one, also.  

[Just-Lisa-Now-]

But if its an advance on 2020 and he was still alive for 6 days in 2020, wouldn't he be entitled to the stimulus that would be on the 2020 return?

[sjrcpa]

That's my feeling.

[abctax55]

I agree...

And I tend to file a return in these cases, even if under the income limits, just for SOL reasons.

[qbteachmt]

"A [stimulus] payment made to someone who died before receipt of the payment should be returned to the IRS by following the instructions about repayments,” according to updated guidance posted on IRS.gov on May 6. “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."

From AARP, here:

https://www.aarp.org/money/taxes/info-2020/stimulus-check-in-deceased-name.html

And Question 2, Who is not eligible:

"A deceased individual."

From here:

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

Now, I assumed the given date is US format as Jan 6, 2020 and then the payment arrived after death. If that date of death as stated translates as June 1, 2020 and the person was alive when the check arrived and died afterward, you get to keep it.

[qbteachmt]

This article is dated Today:

https://www.kiplinger.com/article/taxes/t054-c005-s001-what-if-you-get-a-stimulus-check-for-a-dead-p...

[BobKamman]

Yes, that is certainly the government's side of the story.  Same government that lost a couple cases in the Supreme Court the last couple weeks.