Stimulus Error

[pricermd]

I have a client who claimed their children (correctly) on their tax return.

The kids filed 104EZ's on their own and claimed themselves as exemptions. I just finished the 1040X's for the son and daughter. Both the son and the daughter received a stimulus payment based on the EZ filing. Son cashed his check already while the daughter did not.

Waiting on the IRS stimulus hotline number is not happening. After 2 hours of listening to the nutcracker, I am done. Can anybody help me as what to do with the stimulus payments?

[BOB W]

I think>>>> if you leave it alone ( as orginally filed) your client will get a rebate check on his 2008 tax return. If the children are 17 next year, your client will get nothing and amending 2007's tax return is the best route.

[OtisMozzetti]

Children have been claimed twice

The wise thing to do is to first figure out for sure whether the client, or the child, meets the rules for claiming a dependent in the case of each child. Then promptly fix, by amending, the return of whichever one, the client or the child, filed the return improperly.

You've already done that, and expect to see the IRS pay the stimulus to your client, and collect the stimulus payment plus back from the children. That is, unless the IRS asks to see documentation of the dependency status in which case it all depends on what the IRS thinks of that documentation.

[S T]

Question

How is IRS going to handle erroneous stimulus payments, say in the case of the OP that posted this thread?

Seems like we will be living with stimulus payment under/overpayment for the next tax year at least if not beyond!

Is there any procedure that has been posted? I don't think any of the 1040X forms have been changed to accomodate?

Sandy