stimulus check for dead person?

[Rapid Robert]

IRS updated Q & A

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

See Question #10 and #41

Except the answer to #10 is in contradiction to the actual law. Nowhere does it say in the CARES Act that " A Payment made to someone who died before receipt of the Payment should be returned to the IRS". And in fact, "should" is just an advisory term, we all know that in tax law unless it is "shall" or "must", it is optional.

[Rapid Robert]

As I pointed out weeks ago, this is no different from the Making Work Pay credit in 2008. Here is Congressional testimony including Nina Olson, the Taxpayer Advocate at the time. Note in the analysis that the law regarding EIP is structured the same way as the previous law.

https://procedurallytaxing.com/nina-...s-late-mother/


UPDATE: here is an even more timely and easier to read post, again with Nina Olson's correct position regarding the EIPs made to now deceased taxpayers.

https://www.latimes.com/california/story/2020-04-24/coronavirus-stimulus-check-death-payment

[Burke]

So if died in 2020, was still eligible in 2019.

Don't think so. The system only used the 2019/2018 tax returns as a matter of convenience to expedite the checks, since TP's still have up until 7/31/20 to file 2019, (not even counting extensions) and the Congress obviously did not want to wait.

[Rapid Robert]

Don't think so. The system only used the 2019/2018 tax returns as a matter of convenience to expedite the checks

I don't know what "system" you are talking about. I, and Nina Olsen (US Taxpayer Advocate, retired 7/2019) along with numerous others, are talking about the tax law (CARES Act).

Did you read either of the links I posted? Where (which statements, conclusions, sentences, etc) do you think they are in error?

[TAX4US]

So what is the correct way to go. Send it back or keep it? You read the Act saying one thing and others saying something different. Will it take a Technical correction to finally decide once and for all what we are to do?

[dtlee]

So what is the correct way to go. Send it back or keep it? You read the Act saying one thing and others saying something different. Will it take a Technical correction to finally decide once and for all what we are to do?

I would suggest that you try to follow the law. Isn't the hierarchy something like this:

1. Constitution of the United States of America
2. Internal Revenue Code
3. Treasury Regulations
4. Revenue Rulings
5. Revenue Procedures
6. Written Determinations (Private Letter Rulings, Technical Advice Memoranda, Chief Counsel Advice)
7. Forms & Publications
8. Poorly written FAQs with vague information and typographic errors

[rbynaker]

I would suggest that you try to follow the law. Isn't the hierarchy something like this:

1. Constitution of the United States of America
2. Internal Revenue Code
3. Treasury Regulations
4. Revenue Rulings
5. Revenue Procedures
6. Written Determinations (Private Letter Rulings, Technical Advice Memoranda, Chief Counsel Advice)
7. Forms & Publications
8. Poorly written FAQs with vague information and typographic errors

You left out #9 Tweets by government officials

[Burke]

I did read the links. It took a while to find the pertinent information but -- bottom line -- here is what it said:

"So there you have it. In 2008 the law was written as a credit on 2008 returns, but with an advance payment before the end of the year, based on information from the 2007 return. The recipient did not have to survive until 2008. I found an archived version of the 2008 FAQ [posted on the IRS website] to which she [Nina Olsen] referred. It was issued on March 17, 2008, only 32 days after the law was enacted.

The 2020 law follows the structure of the 2008 law, except that it allows a look back to 2018 if no 2019 return was filed. It remains to be seen, whether IRS will apply it to decedents as was done twelve years ago, and how long it will take to decide."

I think the last line is important. At this writing, all we have is an FAQ on the current website.....and it is in direct contradiction with the 2008 payment treatment.

[TaxGuyBill]

I just posted this on another thread, but though I would post it here too (in this scenario, one spouse died in 2019):


In my opinion, it depends on which year the Stimulus Payment was based on. If the payment was based on the 2018 tax return (because 2019 has not been filed yet), the Law indicates both spouses are "eligible" and therefore the payment is correct and it would be legal to keep it. If the payment was based on the 2019 tax return, the one spouse was dead, and "estates" don't qualify for the payment. So in that scenario, the payment was in error and should be returned.

[Rapid Robert]

How ironic. Tax professionals who under most circumstances will fight the IRS tooth and nail to help a taxpayer get out of paying tax that the taxpayer ACTUALLY OWES, suddenly roll over and play dead when known tax law violator [1] Mnuching tweets out a "policy" and then follows it up with a website FAQ that lacks the same amount of authority as the tweet. You know, you "should" return the stimulus check, but we really can't do anything about it if you don't.

[1] §6103(f)