Most of the millions of folks who have received their stimulus checks are ready to spend or save that money. For the thousands who reportedly received the stimulus payments in error, the IRS is hoping they are ready to return to sender.
One major hiccup in the stimulus payment has been that thousands of foreign workers − who do not live in America − have received the payments, which were earmarked by the billions of dollars for Americans struggling through the coronavirus pandemic, tax consultants shared with Politico recently.
Last month, it was reported that some deceased people and incarcerated individuals had received the payments. The IRS confirmed with Business Insider on Wednesday that some economic impact payments were mistakenly sent, and the agency is asking those recipients, or their family members, to return the money.
How did it happen?
Donna Kepley, president of the tax firm Arctic International, said the error of sending to foreign exchange students and workers was likely due to a common tax-filing error. She told Politico after speaking to a number of clients during the last two weeks that the blunder likely meant those folks got payments they were not intended to receive. Those on F-1 student and J-1 exchange visas, many of whom are studying at universities and working summer jobs, often turn to TurboTax and other e-filing systems without knowing that the systems are designed only for U.S. residents.
Due to that flub, many temporary foreign workers file the wrong tax forms. The IRS does not typically catch the error, according to Kepley, because non-immigrant workers’ Social Security numbers have the same number of digits as those of U.S. citizens.
For those deceased recipients of the stimulus payments, Business Insider reports that with couples filing jointly, the money could have automatically been sent to bank accounts or addresses linked to the joint tax returns − without checking to see if both spouses were still living.
In newly released guidance, the IRS says recipients who fall into these categories “should” return the money “immediately,” but there is no official mandate. However, there is no penalty currently listed for keeping the payment.
To return the payments, this is the process for paper and electronic checks:
If it’s unspent and you received via a mailed, paper check:
- Write "Void" in the endorsement section on the back of the check.
- Mail the voided Treasury check immediately to the appropriate IRS location listed below.
- Don't staple, bend or paper clip the check.
- Include a note stating the reason for returning the check.
If you received via direct deposit or you’ve already spent the paper check:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
- Write on the check/money order made payable to "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 EIP.
For more information on returning the stimulus payments sent in error, visit
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