stimulus check for dead person?

[sdarave]

Just when you think you've heard it all. Yesterday I recieved a call from a client whose mother, also a client, passed away in late december 2019. He has received a stimulus check ($1200) for his mom. It is made out to Mrs.XXXX XXXXXX (DECEASED) c/o (Her son). His question; "what should I do with the check?" I told him to bank it and be prepared to return it if requested. I suspect the money is his to keep as part of mom's estate. Thoughts?

[ATSMAN]

One of my client's reported the same. Her dead mother received a Stimulus Check and the funny thing is that the check says Deceased. I did not see in the legislation that dead people are entitled to the stimulus payment in they died in 2018. Crazy! I told her to save the check and return to IRS after they open up. Cashing a US Treasury check illegally is a Federal Crime!

[sdarave]

Well, I figure if they can vote why shouldn't they receive a stimulus check?

[TAXNJ]

Just when you think you've heard it all. Yesterday I recieved a call from a client whose mother, also a client, passed away in late december 2019. He has received a stimulus check ($1200) for his mom. It is made out to Mrs.XXXX XXXXXX (DECEASED) c/o (Her son). His question; "what should I do with the check?" I told him to bank it and be prepared to return it if requested. I suspect the money is his to keep as part of mom's estate. Thoughts?

if, again if, the check needs to be returned:

https://www.irs.gov/taxtopics/tc161

[Burke]

. I suspect the money is his to keep as part of mom's estate. Thoughts?

Don't think that Congress intended for that to happen at all. Apparently there were no controls in the system, which was hastily erected, to screen out deceased persons.
It says "DECEASED" on the check because that is how it is on the tax return which this system accessed. It is definitely NOT estate money, and would not be listed on the tax return Form 1041.

[ATSMAN]

Don't think that Congress intended for that to happen at all. Apparently there were no controls in the system, which was hastily erected, to screen out deceased persons.
It says "DECEASED" on the check because that is how it is on the tax return which this system accessed. It is definitely NOT estate money, and would not be listed on the tax return Form 1041.

I still can't understand why the programmers did not code to read that string of characters and toss the record to the side and NOT process a check. They can later review all those records to see if anything was in error and reprocess. Now there are checks out there that may or may not get cashed when the intention of the law was NOT to pay them.

[TaxGuyBill]

Economic stimulus payments errantly sent to the deceased should be returned, according to the Treasury Department.

A Treasury spokesperson indicated the department is developing a plan to retrieve the coronavirus-related payments, but didn't provide details.

https://www.politico.com/news/2020/04/28/treasury-stimulus-payments-to-dead-people-219063

[TAXNJ]

I still can't understand why the programmers did not code to read that string of characters and toss the record to the side and NOT process a check. They can later review all those records to see if anything was in error and reprocess. Now there are checks out there that may or may not get cashed when the intention of the law was NOT to pay them.

Why are you surprised!

You missed your calling to tell the government to correct it before the 2020 checks went out since the 2009 stimulus checks from both prior administrations had the same problem.

So this is nothing new with the issue of the 2020 checks

https://www.theatlantic.com/business...-people/64309/

[TAXNJ]

Don't think that Congress intended for that to happen at all. Apparently there were no controls in the system, which was hastily erected, to screen out deceased persons.
It says "DECEASED" on the check because that is how it is on the tax return which this system accessed. It is definitely NOT estate money, and would not be listed on the tax return Form 1041.

If it is based on one’s 2018 tax return (who was alive) only and that person dies the following year, would the estate be entitled to receive it?

Sure there will be some challenges for that position.

[ATSMAN]

Why are you surprised!

You missed your calling to tell the government

I regret my decision 40 years back to drop off from computer science major (that is what it was called then), because I could not stand COBOL programming, and graduated with general business as a major without any marketable skills!

[Kram BergGold]

There is nothing in the law stipulating that deceased taxpayers are not entitled to the stimulus payment. A colleague of mine remembers this issue being raised the last time we had stimulus type payments and decedents spouses or estates got to keep the payments.

[ATSMAN]

There is nothing in the law stipulating that deceased taxpayers are not entitled to the stimulus payment. A colleague of mine remembers this issue being raised the last time we had stimulus type payments and decedents spouses or estates got to keep the payments.

Secretary of Treasury was on TV asking family members who received Stimulus Check for their Deceased Relative to send it back. I believe on another TV show someone said that cashing those check may amount to a Federal crime.

[Lion]

The CARES Act does NOT require their return. Mnuchin has indicated the IRS will try to get them back.

[Burke]

If it is based on one’s 2018 tax return (who was alive) only and that person dies the following year, would the estate be entitled to receive it?

No. Remember, this is only an advance on the 2020 return. The deceased person will not be filing a 2020 return, whether they died in 2018 or 2019.

[TAXNJ]

No. Remember, this is only an advance on the 2020 return. The deceased person will not be filing a 2020 return, whether they died in 2018 or 2019.

That would be if they have to file a 2020 return