$600 Stimulus Check, Changing Direct Deposit Information

[Rapid Robert]

So now tax preparers have to take the blame for IRS??

Many if not most tax preparers make a handsome living off of the shortcomings and flaws of the IRS. So yes, it's a package deal.

[ATSMAN]

Perhaps you should have told the taxpayer that the payments are still being processed through January 15.

Yes I could have but I just did not like his attitude. So I am not too sad to see him go!

[New York Enrolled Agent]

The Get My Payment site is not very helpful to taxpayers who still have not received the payment. It says No information available or you may not be eligible. One of my new clients got the $1200 check last year and when he did not get the $600, he checked and got that useless info. So he calls me to check with IRS and I told him that there is no IRS option to expedite it. I can do the RRC worksheet when I file his tax return once IRS opens up. He asks how soon, I say don't know. So he tells me you are no help go F*** yourself.

So now tax preparers have to take the blame for IRS??

Perhaps you should have told the taxpayer that the payments are still being processed through January 15.

[ATSMAN]

Kathy Morgan, EA, Ustcp:

For folks looking - the IRS has posted new draft instructions for the 1040 that includes the new worksheet for computing both EIP payments and the credit (page 59 of the instructions).

The Get My Payment site is not very helpful to taxpayers who still have not received the payment. It says No information available or you may not be eligible. One of my new clients got the $1200 check last year and when he did not get the $600, he checked and got that useless info. So he calls me to check with IRS and I told him that there is no IRS option to expedite it. I can do the RRC worksheet when I file his tax return once IRS opens up. He asks how soon, I say don't know. So he tells me you are no help go F*** yourself.

So now tax preparers have to take the blame for IRS??

[Lion]

Kathy Morgan, EA, Ustcp:

For folks looking - the IRS has posted new draft instructions for the 1040 that includes the new worksheet for computing both EIP payments and the credit (page 59 of the instructions).

[Rapid Robert]

It does not say anything about those who die in 2020.

Of course it does. It says everyone who meets the other criteria is eligible, and then it says, but not if deceased prior to 2020. Therefore those who were not deceased prior to 2020, including those who die in 2020, are still eligible.

[TaxGuyBill]

No, that was not it. The last time we had Recovery Rebate Credits with advance payments, back around 2007-08 as I recall, the exact same language appeared and back then payments also legally and properly went to the survivors of deceased taxpayers. It was a pure error on the part of the IRS, probably deliberate as they were trying to implement some executive order about "improper payments" promulgated by one of the former Trump chiefs of staff (there have been so many, I can't remember which one).

The new law says this (previously alluded to by NYEA in this thread):

‘1 ‘(A) any individual who was deceased be-
2 fore January 1, 2020, shall be treated for pur-
3 poses of applying subsection (g) in the same
4 manner as if the valid identification number of
5 such person was not included on the return of
6 tax for such taxable year, and
7 ‘‘(B) no amount shall be determined under
8 this subsection with respect to any qualifying
9 child of the taxpayer if—
10 ‘‘(i) the taxpayer was deceased before
11 January 1, 2020, or
12 ‘‘(ii) in the case of a joint return, both
13 taxpayers were deceased before January 1,
14 2020.

That says no advance credit would be payable to those who died in 2019 or earlier. It does not say anything about those who die in 2020. But as I just posted, the Draft Instructions say the a person that dies in 2020 does qualify.

[TaxGuyBill]

Oh, I just saw that the Draft Instructions say that a person who died in 2020 DOES qualify.


Generally, you are eligible to claim the recovery rebate credit if in 2020 you were a U.S. citizen or U.S. resident alien, weren't a dependent of another taxpayer, and have a valid social security number. This includes someone who died in 2020, if you are preparing a return for that person

https://www.irs.gov/pub/irs-dft/i104...ft.pdf#page=58

[Rapid Robert]

That is presumably the basis of why the IRS said the first credit was not allowed to deceased people.

No, that was not it. The last time we had Recovery Rebate Credits with advance payments, back around 2007-08 as I recall, the exact same language appeared and back then payments also legally and properly went to the survivors of deceased taxpayers. The 2020 website FAQ was a pure error on the part of the IRS, probably deliberate as they were trying to implement some executive order or failed legislation about "improper payments to deceased people" promulgated by Mark Meadows, one of Trump's many chiefs of staff.

The new law says this (previously alluded to by NYEA in this thread):

‘1 ‘(A) any individual who was deceased be-
2 fore January 1, 2020, shall be treated for pur-
3 poses of applying subsection (g) in the same
4 manner as if the valid identification number of
5 such person was not included on the return of
6 tax for such taxable year, and
7 ‘‘(B) no amount shall be determined under
8 this subsection with respect to any qualifying
9 child of the taxpayer if—
10 ‘‘(i) the taxpayer was deceased before
11 January 1, 2020, or
12 ‘‘(ii) in the case of a joint return, both
13 taxpayers were deceased before January 1,
14 2020.

[TaxGuyBill]

My understanding from reading is that payments are intended for people who did not die prior to 2020 and the credit will likewise be available if they are listed on the 2020 return. Is this inaccurate?

I've seen a couple of comments about the credit being allowed for those who died in 2020, but I haven't seen that in the law (but of course, I just may have missed it). Like the first credit, it says it is not payable to estates. That is presumably the basis of why the IRS said the first credit was not allowed to deceased people. So I would assume that would also apply to the second credit. So I'm hoping I'm just missing something.

One the other hand, it does say that the Advance credit will not be paid to those who died before January 1st, 2020. To me, that would indicate that Advance credit is available to those who died in 2020 and would therefore be eligible for the credit.

If you come across anything definitive, I would love to see it.

[dtlee]

My understanding from reading is that payments are intended for people who did not die prior to 2020 and the credit will likewise be available if they are listed on the 2020 return. Is this inaccurate?

[New York Enrolled Agent]

Since IRS works through Social Security records to send checks to eligible senior citizens, will they also use the Social Security Administration's records to determine if the person is deceased?
From what I understand - religious organizations and funeral homes, upon knowledge of a person's death - automatically notify the Social Security Administration of a person's death. What I don't wish to see happen what happened in round 1 where deceased people received checks that had to be returned by deceased's representative.

Uncle - your fears for the deceased will be reduced - check out the new IRC section 6428A(f)(2)(A)

[Uncle Sam]

Since IRS works through Social Security records to send checks to eligible senior citizens, will they also use the Social Security Administration's records to determine if the person is deceased?
From what I understand - religious organizations and funeral homes, upon knowledge of a person's death - automatically notify the Social Security Administration of a person's death. What I don't wish to see happen what happened in round 1 where deceased people received checks that had to be returned by deceased's representative.

[ATSMAN]

How do I find out if the IRS is sending me a payment?


People can check the status of both their first and second payments by using the Get My Payment tool, available in English and Spanish only on IRS.gov. The tool is being updated with new information, and the IRS anticipates the tool will be available again in a few days for taxpayers. (Just checked still offline).

How will the IRS know where to send my payment? What if I changed bank accounts?

The IRS will use the data already in our systems to send the new payments. Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail. For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021. Remember, the Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.


So I guess if taxpayer's account info has changed and bank kicks it out, the only option is to use the RRC at tax filing. So folks who normally don't have to file will be forced to file?? Am I reading this correctly?

[ATSMAN]

One of my clients got a $600 deposit yesterday. So far nothing showed up in my bank account!