My client received duplicate 3rd stimulus payment for his adopted grandchildren. What do we do

[Just-Lisa-Now-]

Yep, LOTS of people are getting extra $1400 payments...IRS is just throwing money around willy nilly these days, youd think theyd have the hang of this by now.

[BobKamman]

Some details would be helpful.  Were they claimed by someone else in 2019? Or did he claim them in 2019, and his 2020 return has not yet been processed?  

[kitty2]

The ones that received the duplicate payments are grandchildren and now adopted children of my client.  I believe the problem is that they received the stimulus based on my clients returns but then when the checks were issued for social security recipiants that had not filed a return, they were issued a duplicate check.  I have been talking to others with this same issue, but nobody seems to know what to do with the extra money.

[BobKamman]

So these are minor children receiving survivor benefits?  There may be a lot of that happening, as it does also with retired parents who are claimed as dependents.  It's cheaper to send duplicate payments than it was to invest in technology, 20 years ago, that would match dependent SSN's with SS beneficiaries.  

[kitty2]

Does the IRS expect these payment to be returned or are they just a bonus?

[BobKamman]

It depends on whether the news media discover the problem

[kitty2]

I have advised my client to not be in too big of a rush to return the duplicate payments but not to spend it until we know more.  Please let me know if you get any updates.