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The Treasury says 60,000 stimulating checks sent to the dead will be returned

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A Treasury report issued Thursday reported that approximately 60,000 stimulating checks sent to deceased individuals were voluntarily returned. The total amount of money returned was $ 72 million.

Households were issued a $ 1,200 economic impact payment as part of the CARES Pandemic Relief Act passed in March 2020. By the end of the year, the IRS had issued approximately 168 million checks totaling $ 280 billion.

However, according to the Treasury, the federal government has sent about 4.5 million payments to individuals who may not be eligible for assistance. report..

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Approximately half of these payments, a total of $ 5.5 billion, were paid to deceased individuals, according to the Treasury, which analyzed such data until mid-July. The rest were issued to dependents, non-residents, and others who accidentally received duplicate payments.

Approximately $ 59,500 (equivalent to $ 72 million) of these payments to the deceased was voluntarily returned by October 1, according to the report.

They make up the majority of the total 65,447 stimulus checks ($ 80 million worth) that Americans have returned to the federal government.

The CARES Act is based on the payment eligibility of the 2018 or 2019 tax return, whichever has recently become available for the IRS. However, after these tax returns were filed, Americans may have died, especially as the coronavirus pandemic began to spread throughout the United States.

The Government Accountability Office reported that the federal government followed the procedure for issuing stimulus checks to deceased Americans during the Great Recession.

The IRS then reversed the course and asked the individual for a refund.

In addition to the voluntarily returned funds, another 668,277 payments totaling more than $ 872 million were either rejected by the bank or returned to the IRS as undeliverable.

According to Kenneth Corbyn, a commissioner for government wages and investment, the IRS correctly calculated and sent stimulus checks in 98% of cases. (The statistics were confirmed by a Treasury report.)

“Within 10 days [CARES ACT] Enacted, IRS … Issued about 81 million [Economic Impact Payments] Corbyn said in a response to the report, “a total of about $ 147 billion,” “compared to the approximately two months required to issue a stimulus in 2008, this response is unprecedented. I did. “

The report also inflated the number of improper payments, he said.

For example, the report claims that about 1.1 million payments were made to dependents who would have been ineligible because they were 16 years of age or older. However, Corbyn said they were not over 16 years of age during the tax year on which payments were based.

Two more stimulus checks ($ 600 and $ 1,400) were sent as part of another pandemic remedy.

The $ 900 billion bill in December sought to reduce the number of checks sent to the deceased by banning those who died before January 1, 2020 from receiving payments.

The Treasury says 60,000 stimulating checks sent to the dead will be returned

Source link The Treasury says 60,000 stimulating checks sent to the dead will be returned

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