Deceased Stimulus Check Update

[Terry D EA]

 I received a stimulus check for my deceased mother. I know the envelope says check the box and drop in the mail. But....I don't trust the mail and with the current IRS back log of everything, I am feeling uncomfortable just "dropping" it in the mail. Has anyone seen any further guidance on how to return this? I've read several articles some questioning the legal aspect of the law regarding returning it, the fact it is a tax credit and will be reconciled on the 2020 return, Munchin stating the checks "should" be returned and future guidance is coming. As for my situation, there won't be a 2020 return for my mother. If anything it goes to the deceased's estate. But, most estates are closed. My mother didn't have an estate due to being a Medicaid recipient. So, at this time, I'm just going to hold the check for a while Anyone agree or disagree?

[Randall]

That's my position too.  I've told my client to hold the check for now.

[BulldogTom]

Client emailed me.   Administrator of his sister's estate.   Check was made out to him and his deceased sister.   Is not comfortable putting it back in the mail and checking the deceased box because he is sure the IRS will assume he is the decedent.   He may not be wrong.   Told him to not cash the check.   Sit on it until this situation clears up and I can get some guidance from the IRS.

Tom
Modesto, CA

[Randall]

Me too BulldogTom.  Hold check and wait.

 

[Gail in Virginia]

I got the one for my mother, made it out to her name, dec'd.  I checked the box and threw it in the mail at the post office.  They obviously knew she was deceased - it said so right after her name!.  Her estate has been closed over a year, since she passed away in 2018 and we settled everything within 12 months.  The check will not clear unless someone at the IRS or USPS steals it and negotiates it; I don't want to keep up with another piece of paper indefinitely.  If it actually had my name on it, like the one Tom mentioned, I would probably feel differently. 

But I find it a little disconcerting that this many people are getting checks for those that are deceased.  We are a relatively small group, and at least 4 of us have seen this already?  I guess that is what happens when you can just print money instead of having to earn it. 

[JohnH]

13 minutes ago, Gail in Virginia said:

I got the one for my mother, made it out to her name, dec'd.  I checked the box and threw it in the mail at the post office.  They obviously knew she was deceased - it said so right after her name!.  Her estate has been closed over a year, since she passed away in 2018 and we settled everything within 12 months.  The check will not clear unless someone at the IRS or USPS steals it and negotiates it; I don't want to keep up with another piece of paper indefinitely.  If it actually had my name on it, like the one Tom mentioned, I would probably feel differently. 

But I find it a little disconcerting that this many people are getting checks for those that are deceased.  We are a relatively small group, and at least 4 of us have seen this already?  I guess that is what happens when you can just print money instead of having to earn it. 

Print money?  Is that how they do it?  I thought the government just went out and got a second job to pay the extra bills when it spends more than it takes in.   Wow, was I wrong or what? 

 

[Medlin Software, Dennis]

If a check arrives, or a DD was made for my mother, it will be used to pay back admin expenses, and if the IRS tries to claw back, the estate can pay it.  If a check arrives, I will likely get it via mail forwarding.  If there was a DD, I will not know until at least July when the probate court date finally comes.  I expect it will be a check, based on the little financial information I can access of my mom's...

DOD was Pi day 2020, so it may be interesting to see how a check is addressed...

[Lion EA]

Our government just borrows more from China.

[Gail in Virginia]

1 hour ago, JohnH said:

Print money?  Is that how they do it?  I thought the government just went out and got a second job to pay the extra bills when it spends more than it takes in.   Wow, was I wrong or what? 

 

Of course they print it - what did you think happened to all the toilet paper?  They have to print it on something....

[Medlin Software, Dennis]

2 minutes ago, Gail in Virginia said:

Of course they print it - what did you think happened to all the toilet paper?  They have to print it on something....

That could make someone fall of their bowl laughing.  The other funny theory is the shortage was caused by people not being able to "go" at work, or bring home paper from work,m and had to buy more for home use.

We all pay somehow, there is no such thing as free money...  CA Prop 13, property tax limits, so we have crazy other taxes and fees.  Certain areas pay for schools via wage taxes.  My personal property tax includes sewer (I pay to go with my property tax, not my water bill), some include sewer with water fees.

[Bart]

4 hours ago, Gail in Virginia said:

  We are a relatively small group, and at least 4 of us have seen this already?  

+1 = 5.  I got one also.

[Terry D EA]

20 hours ago, BulldogTom said:

Client emailed me.   Administrator of his sister's estate.   Check was made out to him and his deceased sister.   Is not comfortable putting it back in the mail and checking the deceased box because he is sure the IRS will assume he is the decedent.   He may not be wrong.   Told him to not cash the check.   Sit on it until this situation clears up and I can get some guidance from the IRS.

Tom
Modesto, CA

Exactly what I'm going to do. Gail made me take a second look at how the check was addressed. It is in my mother's name but the word dec'd was not beside her name.  

[TKTax]

Guess we need to send it back. IRS has updated Q and A on their website:

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

Questions #10 and 41 deal with this

[Randall]

Thanks for info TKTax.

 

[Gail in Virginia]

I tried sending it back using the instructions on the envelope to mark the box and drop it in a mailbox.  I got it back again today. 

[Randall]

I think the question 41 answer from TKTax's link is a better way.  Put it in a separate envelope and mail to the address listed.  Also mark the check VOID in the endorsement section and include a note for the reason for returning the check.

[Gail in Virginia]

43 minutes ago, Randall said:

I think the question 41 answer from TKTax's link is a better way.  Put it in a separate envelope and mail to the address listed.  Also mark the check VOID in the endorsement section and include a note for the reason for returning the check.

Obviously that is more likely to work.  On the other hand, I did not do anything to request this check, I filed a 2018 return notifying the IRS of my mother's death, they were also notified by SSA, and yet they sent this anyway and now I have to take the time to address an envelope, pay for an envelope and stamp, to send them back the check I did not want in the first place?  Gotta love the guvmint.

[Randall]

2 hours ago, Gail in Virginia said:

Obviously that is more likely to work.  On the other hand, I did not do anything to request this check, I filed a 2018 return notifying the IRS of my mother's death, they were also notified by SSA, and yet they sent this anyway and now I have to take the time to address an envelope, pay for an envelope and stamp, to send them back the check I did not want in the first place?  Gotta love the guvmint.

Yes, you have to take the time and pay for the envelope and stamp.  Life's unfair.  Just kidding.

[TAXMAN]

I wonder since no one is opening mail when will they know its back?

[Lion EA]

I've been telling clients to wait for the next round of clarifications.

[Abby Normal]

This is a complete mess! There needs to be an arbitrary date that if you died before you aren't entitled to the 2020 credit, regardless of the date you actually received the payment, because the payments are slowly getting paid over several months. And what if you die after you received the check but before you had a chance to deposit it?

Will the IRS check the 2020 date of death to the date the check was issued, or the date the check was cashed, to determine whether to disallow the credit?

And is any of this fair? People who got their payment direct deposited on 4/15 and die today can keep it. But people who die today and get a payment in June or August, can't keep it?

Can we please stop the insanity?!

 

 

[JohnH]

These problems are a result of the IRS trying to comply with the impetus to push stimulus payments out as quickly as possible in order to achieve an economic goal.  They've basically turned an aircraft carrier around in the middle of a battle.  

The goal of getting the payments out is being achieved in an exceptional manner, but naturally it's messy given the conditions and time frames.  I'm not one to compliment the IRS very much, but I think under these circumstances they're doing a fantastic job.  

[Randall]

I agree John.  They've had to rush a lot of things.  I think the IRS is doing the best they can.  There's a lot of things to sort out yet.