EIP in January $600

[Gretel]

TP with low income received $400 EIP as DD but the letter states $600 was sent and no other explanation. Has anyone else experienced this and what to do? The missing $200 most certainly cannot go on the tax return in this case.

[TaxGuyBill]

Is it possible that any of it was taken for some debt?

Maybe get the 2020 "Account Transcript" to see what it shows?

[Rapid Robert]

I actually posted more or less the same thing as TGB just did, but then I deleted it because I wasn't sure. So now I had to go roll up my sleeves and check the law.

Under the CARES Act,,

"Any credit or refund allowed or made to any individual
11 by reason of section 6428 of the Internal Revenue Code
12 of 1986 (as added by this section) or by reason of sub
13 section (c) of this section shall not be—
14 (1) subject to reduction or offset pursuant to
15 section 3716 or 3720A of title 31, United States
16 Code,
17 (2) subject to reduction or offset pursuant to
18 subsection (d), (e), or (f) of section 6402 of the In
19 ternal Revenue Code of 1986, or
20 (3) reduced or offset by other assessed Federal
21 taxes that would otherwise be subject to levy or col
22 lection."

Under the American Rescue Plan,

"Any refund payable by reason of section 6428B(g) of
5 the Internal Revenue Code of 1986 (as added by this
6 section), or any such refund payable by reason of sub
7 section (b) of this section, shall not be—
8 (A) subject to reduction or offset pursuant
9 to subsection (c), (d), (e), or (f) of section 6402
10 of the Internal Revenue Code of 1986 or any
11 similar authority permitting offset, or
12 (B) reduced or offset by other assessed Fed
13 eral taxes that would otherwise be subject to levy
14 or collection."

Now to go look up what the differences mean... sigh.

[New York Enrolled Agent]

I actually posted more or less the same thing as TGB just did, but then I deleted it because I wasn't sure. So now I had to go roll up my sleeves and check the law.

Under the CARES Act,,

"Any credit or refund allowed or made to any individual
11 by reason of section 6428 of the Internal Revenue Code
12 of 1986 (as added by this section) or by reason of sub
13 section (c) of this section shall not be—
14 (1) subject to reduction or offset pursuant to
15 section 3716 or 3720A of title 31, United States
16 Code,
17 (2) subject to reduction or offset pursuant to
18 subsection (d), (e), or (f) of section 6402 of the In
19 ternal Revenue Code of 1986, or
20 (3) reduced or offset by other assessed Federal
21 taxes that would otherwise be subject to levy or col
22 lection."

Under the American Rescue Plan,

"Any refund payable by reason of section 6428B(g) of
5 the Internal Revenue Code of 1986 (as added by this
6 section), or any such refund payable by reason of sub
7 section (b) of this section, shall not be—
8 (A) subject to reduction or offset pursuant
9 to subsection (c), (d), (e), or (f) of section 6402
10 of the Internal Revenue Code of 1986 or any
11 similar authority permitting offset, or
12 (B) reduced or offset by other assessed Fed
13 eral taxes that would otherwise be subject to levy
14 or collection."

Now to go look up what the differences mean... sigh.

I think under CARES the only permissible offset was for delinquent child support. IRC 6402(c)

It appears under ARP that offset has been removed.

[Gretel]

Is it possible that any of it was taken for some debt?

Maybe get the 2020 "Account Transcript" to see what it shows?

Maybe, I believe garnishment is allowed. One would think TP would receive a letter and it might still come.

[Rapid Robert]

I think under CARES the only permissible offset was for delinquent child support. IRC 6402(c)

It appears under ARP that offset has been removed.

Ok, so even more permissive (in favor of taxpayer).

But what are the offsets for those code sections under Title 31? I took a glance and couldn't tell.

[Rapid Robert]

Might have something to do with debt collectors (non-IRS), if one can believe little news snippets. I've seen this mentioned several times now, but in the news they never have to provide a cite to support their opinions.