Some Taxpayers Received Duplicate Stimulus Payments

[Jesse]

This just came in the NATP newsletter:

Some Taxpayers Received Duplicate Stimulus Payments

The IRS has received reports of some taxpayers receiving duplicate economic stimulus payments. The duplicate payments are either in the form of a paper check or an additional direct deposit. Individuals who receive duplicate economic stimulus payments should immediately return the erroneous payment to the IRS.

If the erroneous payment was received as a paper check, the check should be marked "VOID" in the endorsement section on the back of the check and the recipient should attach a note indicating that he or she is returning an "Erroneous Stimulus Payment Check."

Individuals who receive duplicate direct deposits of economic stimulus payments should advise their bank or financial institution of the mistake. The bank or financial institution will know the proper procedures for returning the money to the IRS.

[erchess]

Why do we put up with this?

I realize that the IRS will eventually get around to asking for the money back with interest and perhaps penalty if people do not return the second payments. But why do the American People put up with this situation? If someone gives me money and it's not a response to provably illegal behavior on my part it should be free money that I get to keep.

[S T]

Stimulas Payments

It would seem the t/p would know what they are to receive, but then this Stimulus Package Rebate is giving some of my t/p some other surprises as well. Some t/p are receiving more, some are receiving less, some are receiving payments when they shouldn't, etc.

I guess as a taxpayer, they should either contact the IRS or the tax preparer if they have a question about too much payment or a duplicate payment. We all know that the IRS will bill additional penalties and interest if it is a duplicate payment in error and the taxpayer does not contact the IRS and refund the monies, or send in the
"voided" check.

Well so far I haven't had duplicate payments, but I have had clients calling and wondering why they didn't receive the full amount. The seniors with just the social security income qualification, are receiving their $300 just fine, and all are happy.

One client according to my calculations and filling out TMI and IRS worksheets, should not have received anything, but did recieve $500+ and he was whining about not receiving $1200.

Another client received her $600 and we weren't sure on that one because of some farm income, so that was good, and she is totally happy!

Seems like we are going to continue to have fun come the 2008 filings in 2009!

Sandy

[JohnH]

My attitude about the stimulus payment has evolved over the past few weeks, and I'm seeing it as an opportunity to provide a value-added service and also to serve some longer-term objectives.

Most of the questions I have received from clients were sent by email, and I just emailed the link back to them for the "Where's My Stimulus Payment" web site. When someone calls, I get their email address and tell them I'll email the link to them as well, which encourages them to use email in the future for any tax question. ( A very important objective, IMO).

There have been several occasions in the past few weeks when I checked the web site because it was a special client situation (family member, deceased spouse, elderly client, regular accounting client, deceased spouse, etc) . Also in a few situations I checked it for someone calling while we were on the phone even though I still emailed them the link.

Bookmarking the link makes it easy to jump to it while the phone conversation is taking place. Anyhow, whenever I've checked it myself (with the client's permission), I printed off the response page and placed it in the client's file, so when tax filing time rolls around next year I already have the info on hand - won't even need to ask about it.