5-8-20 Coronavirus Economic Impact Payments – IRS Guidelines for Returning Economic Impact Payments Issued to Deceased Taxpayers

Thousands of deceased taxpayers inadvertently received Economic Impact Payments from the Internal Revenue Service (IRS) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, H.R. 748). The CARES Act did not specify whether these funds may be lawfully retained.

The IRS clarified on May 6, 2020, that Economic Impact Payments issued to deceased individuals must be returned per the "Economic Impact Payment Information Center" on the IRS website: https://www.irs.gov/coronavirus/economic-impact-payment-information-center.

"A Payment made to someone who died before receipt of the Payment should be returned to the IRS by following the instructions [below]. Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made on account of the [deceased taxpayer]. This amount will be $1,200 unless adjusted gross income exceeded $150,000."

Follow these instructions if the deceased taxpayer received a paper check:

· Write "VOID" in the endorsement section on the back of the check.

· Mail the voided Treasury check immediately to Brookhaven Refund Inquiry Unit, 5000 Corporate Ct. Mail Stop 547, Holtsville, New York 11742.

· Do not staple, bend, or paper clip the check.

· Include a note stating the reason for returning the check.

Follow these instructions if the payment was a paper check and you have cashed it, or if the payment was a direct deposit:

· Submit a personal check, money order, etc., immediately to the address listed above.

· The check/money order should be made payable to the “U.S. Treasury” and write "2020EIP" and the taxpayer identification number (social security number, or individual taxpayer identification number) of the recipient of the check.

· Include a brief explanation of the reason for returning the Economic Impact Payment check.

Please contact your Woods Oviatt attorney or the attorneys listed below regarding this or any COVID-19 related issues.

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