IRS canceling stimulus checks sent to dead people, other ineligible groups

IRS sent about 965,000 stimulus payments to decedents

The IRS is aiming to recoup some of the $1 billion worth of stimulus payments mistakenly made to dead people by canceling some of those checks.

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In updated guidance on its website, the tax agency said the Bureau of Fiscal Service has canceled outstanding payments that were issued to recipients who were not eligible, including decedents.

Other groups of people who have been asked to return payments are the incarcerated as well as some ineligible foreign workers.

IRS KNEW STIMULUS CHECKS WERE BEING SENT TO DEAD PEOPLE, SHOULDN’T PURSUE COLLECTIONS: WATCHDOG

The IRS sent about 965,000 stimulus payments to decedents, which were valued at around $1 billion.

The agency asked people who found these payments made to dead family members or friends to return them in May.

The updated guidance was first reported by Politico on Monday.

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As previously reported by FOX Business, National Taxpayer Advocate Erin Collins said the IRS was aware checks were being sent to dead individuals.

Under the terms of the CARES Act, dead individuals are not specifically prohibited from receiving the money, so the IRS systems were not programmed to exclude them.

Collins said if payments were made by the IRS despite the fact that it had information that an individual was dead, it should not spend resources pursuing the decedent’s estate or family members.

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As previously reported by FOX Business, the only reason the IRS can garnish a payment is for back-due child support.

Meanwhile, the administration is discussing issuing another round of more targeted direct payments to lower-income and unemployed individuals. A proposal is expected to be presented to GOP lawmakers in the Senate next week.

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