Please ensure Javascript is enabled for purposes of website accessibility
Dead Taxpayers Got Relief Checks. Can Survivors Keep Them?
gvw_ap_news
By Associated Press
Published 5 years ago on
May 9, 2020

Share

President Donald Trump, Treasury Secretary Steven Mnuchin — and now the IRS — are urging people who received coronavirus relief payments for a deceased taxpayer to return the money to the government.

Some of the more than 130 million economic impact payments that went out to taxpayers as part of the $2.2 trillion economic relief package were sent to dead people. That happened mainly because of a lag in reporting data on who is deceased. It’s happened with past federal stimulus payments, and tax experts say is almost inevitable.

But legal experts say there is no law requiring people do that.

Some of the more than 130 million economic impact payments that went out to taxpayers as part of the $2.2 trillion economic relief package were sent to dead people. That happened mainly because of a lag in reporting data on who is deceased. It’s happened with past federal stimulus payments, and tax experts say is almost inevitable.

However, this is the first time the IRS has asked for the money back from the deceased taxpayers’ survivors. Some law experts say the government may not have the legal authority to require it be returned. They also suggest the move may be just the IRS responding to pressure from the White House and the Treasury Department.

Trump and Mnuchin have both said publicly in recent weeks that money sent to deceased taxpayers should be returned. But the IRS didn’t issue any formal guidance until this week. On Wednesday, it updated its website, stating that if a person died before the payment was issued, the money should be returned. It also provided instructions on how to do so.

The IRS and Treasury did not say what would happen if these payments were not returned or otherwise repaid.

Former Taxpayer Advocate Nina Olson said that there is nothing in the law prohibiting payments from going to the deceased. Nor is there anything in the law requiring people to return the payments. And she noted that the language used on the IRS website does not say that returning the payments is required by law.

Relief Payments Were Made to Taxpayers Based on the Information Filed on Their 2019 or 2018 Taxes

“We are starting from these two soundbites and working backward,” Olson, who now runs the nonprofit Center for Taxpayer Rights, said.

The Treasury did not respond to multiple requests for comment.

The relief payments were made to taxpayers based on the information filed on their 2019 or 2018 taxes. But it is considered a rebate on 2020 taxes. The government used the prior tax forms to help speed along payments to the public to offset some of the economic devastation from the coronavirus pandemic.

The problem is, some people who filed those taxes may no longer be alive. Those payments are sent to an heir or executor of their estate. If the payment is based off a final tax return completed after their death, an economic impact payment check may even denote that the person is deceased next to their name.

It’s confusing at best. But it is also would be a legal and logistical mess for the government to try to take back all the money that are unlikely to be pursued, Olson and others said.

“They don’t have a legal leg to stand on,” she said.

The coronavirus rescue package, which included the relief payments, was passed at the end of March. The government started issuing the payments in April. There is no official count of how many payments went to dead people.

Bryan Camp, a law professor at Texas Tech University, is more cautious. He said that the legality of the payment may depend more on when the person died. If someone died in 2020, they should be due the money but before that, likely not.

What Should Someone Do If They Received a Check for Someone Is Deceased?

The IRS guidelines, however, are more fuzzy — only that the death must be prior to the payments, some of which are still pending.

The IRS guidelines, however, are more fuzzy — only that the death must be prior to the payments, some of which are still pending.

Olson and others, including Keith Fogg, a clinical professor of law at Harvard, don’t expect the government will go to extreme measures to claw back the money. The government would be hard pressed to prove survivors weren’t entitled to the payments in the first place as the law is written.

“Someone dies in March of COVID-19, really you are going to say (to their survivors) that you you have to return that payment?” Olson said. “No. I’ll take that lawsuit.”

So what should someone do if they received a check for someone is deceased?

Camp says if it is not due to you, to give it back. Olson said to hold on to it, the IRS has pivoted on some of the rules before and may again.

“If you feel bad, send it back. If you don’t feel bad about it I wouldn’t say you have to send it back,” Fogg said. “You are not breaking the law as I see it.”

Richard Neal, D-Mass., chairman of the House Ways and Means Committee, agreed that that there is nothing in the law requiring the money to be returned.

While families that don’t need the cash should give it back, “some families receiving these payments could use the assistance to cover costs associated with losing a loved one due to the virus,” Neal said in a statement. “People with that kind of need should be able to put the money to use as they grapple with the ongoing crisis.”

DON'T MISS

$165 Billion Revenue Error Continues to Haunt California’s Budget

DON'T MISS

California’s Water Crisis Deepens as San Joaquin Valley Sinks

DON'T MISS

What to Know About Pam Bondi, Trump’s New Pick for Attorney General

DON'T MISS

North Korean Leader Says Past Diplomacy Only Confirmed US Hostility

DON'T MISS

Democrats Strike Deal to Get More Biden Judges Confirmed Before Congress Adjourns

DON'T MISS

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

DON'T MISS

Automakers to Trump: Please Require Us to Sell Electric Vehicles

DON'T MISS

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

DON'T MISS

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

DON'T MISS

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

UP NEXT

Bomb Cyclone Kills 1 and Knocks Out Power to Over Half a Million Homes Across the Northwest US

UP NEXT

Volunteers Came Back to Nonprofits in 2023, After the Pandemic Tanked Participation

UP NEXT

New Study: Proposed Trump Tariffs Could Cost US Consumers $78 Billion a Year

UP NEXT

Riders Stuck in Midair for Over 2 Hours on Knott’s Berry Farm Ride

UP NEXT

Shouting Racial Slurs, Neo-Nazi Marchers Shock Ohio’s Capital

UP NEXT

More Logging Is Proposed to Help Curb Wildfires in the US Pacific Northwest

UP NEXT

Scientists Fear What’s Next for Public Health if RFK Jr. Is Allowed To ‘Go Wild’

UP NEXT

Warren Slams Biden Admin for Failing to Hold Israel Accountable on Gaza Aid

UP NEXT

Suicides in the US Military Increased in 2023, Continuing a Long-Term Trend

UP NEXT

New FDA Rules for TV Drug Ads: Simpler Language and No Distractions

North Korean Leader Says Past Diplomacy Only Confirmed US Hostility

12 hours ago

Democrats Strike Deal to Get More Biden Judges Confirmed Before Congress Adjourns

12 hours ago

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

12 hours ago

Automakers to Trump: Please Require Us to Sell Electric Vehicles

13 hours ago

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

13 hours ago

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

13 hours ago

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

14 hours ago

Average Rate on a 30-Year Mortgage in the US Rises to Highest Level Since July

14 hours ago

Cutting in Line? American Airlines’ New Boarding Tech Might Stop You at Now Over 100 Airports

14 hours ago

MLB Will Test Robot Umpires at 13 Spring Training Ballparks Hosting 19 Teams

15 hours ago

$165 Billion Revenue Error Continues to Haunt California’s Budget

History will — or at least should — see a $165 billion error in revenue estimates as one of California’s most boneheaded political act...

33 minutes ago

33 minutes ago

$165 Billion Revenue Error Continues to Haunt California’s Budget

Photo of Friant-Kern Canal
2 hours ago

California’s Water Crisis Deepens as San Joaquin Valley Sinks

11 hours ago

What to Know About Pam Bondi, Trump’s New Pick for Attorney General

12 hours ago

North Korean Leader Says Past Diplomacy Only Confirmed US Hostility

12 hours ago

Democrats Strike Deal to Get More Biden Judges Confirmed Before Congress Adjourns

12 hours ago

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

President Joe Biden with Mary Barra, the chief executive of General Motors, at the Detroit Auto Show, Sept. 14, 2022. President-elect Donald Trump has promised to erase the Biden administration’s tailpipe rules designed to get carmakers to produce electric vehicles, but most U.S. automakers want to keep them. (Doug Mills/The New York Times)
13 hours ago

Automakers to Trump: Please Require Us to Sell Electric Vehicles

13 hours ago

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

Help continue the work that gets you the news that matters most.

Search

Send this to a friend