IRS Says Stimulus Checks Sent To Deceased Americans Do Not Need To Be Sent Back

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After reviewing the procedures, the IRS says that checks accidentally sent to dead Americans don't need to be returned.

The IRS has just announced that the stimulus checks that had been issued to deceased Americans do not need to be returned to the agency, according to a report by Business Insider.

As a part of the Coronavirus Aid, Relief, and Economic Security Act, Congress authorized the direct payment of $1,200 to those earning up to $75,000 a year, plus $500 for each dependent child. The checks were intended to be issued to Americans that have faced unemployment due to the effects of the pandemic.

However, $1.4 billion in federal cash was accidentally sent to dead Americans after an attempt to quickly issue out the payments. Originally, the agency maintained that the relatives of the recipients of the checks would have to return the payments, but they have since changed their positioning.

After the agency reviewed their procedures, they concluded that the money did not need to be sent back.

Now, Congress and the Trump administration are debating sending out a second round of stimulus checks. President Trump supports the additional payments.

Republicans are trying to decide whether or not restrictions on eligibility for the checks need to be tightened. Senate Majority Leader Mitch McConnell proposed sending the checks to people that earn $40,000 or below, but that option could render up to 20 million Americans ineligible for the payments.

Democrats are pushing for check with the same income restrictions as those under the CARES Act passed in March.

Read the full report here.


Economics, Finance and Investing