The IRS has started depositing coronavirus stimulus check payments into the accounts of deceased Americans.
What We Know:
- Over the past week, the Internal Revenue Service has been sending out coronavirus stimulus checks.
- The IRS began distributing $290 billion in direct cash payment as apart of the $2 trillion CARES Act stimulus bill.
- The plan is to send individuals $1,200 and married couples $2,400 to help the economic crisis caused by the pandemic.
- However, the IRS directed some of the payment to the bank accounts of deceased individuals according to USA Today.
- IRS spokesman Eric Smith said “We’re aware of all the survivor-related questions and we’re still working that issue”.
- This mishap could have been due to administrative resources and the speed with which the agency has been trying to issue the one-time payments.
- According to a tax expert, “this could be happening because the record on the date of deaths are not complete or, in the rush to get the money out, the IRS did not have time to match the date-of-death data to the tax return.
- Normally, the IRS relies on the Social Security Administration for up-to-date death records but unfortunately that information could take anywhere from a few months to a year.
- Now, there are lots of question that need to be answered! For example if the IRS sent the stimulus payment to a deceased individual, are the survivng family members entitled to the funds? Actually, it is stated in the CARES Act that Americans that receive a larger stimulus payment than they should have can KEEP the extra funds!
The IRS and the U.S Treasury Department have a lot of questions to answer for this monumentus hiccup.