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This is a common occurrence under every administration for decades. SS and other federal assistance programs pay deceased persons routinely. Nothing new here, including fraud. Of course, it should be cleaned up but don't hold your breath.
the I.R.S. had put in place a system in 2013 to update tax accounts with death records to address concerns that tax refunds were improperly going to the dead. ... [T]his control was bypassed
The availability of data to prevent this was new. The decision to ignore this data was new.
The IRS was busy yesterday updating its economic impact payment information center with new answers to frequently asked questions. The new guidance clarified that incarcerated individuals do not qualify for a stimulus check. Specifically, the instructions state that, “payment made to someone who is incarcerated should be returned to the IRS.”
Also, if you haven't received your stimulus check, you may have been incorrectly identified by Turbo Tax or H&R Block as someone's dependent even though you were not . This fact was personally verified yesterday by an IRS specialist.
The new guidance clarified that incarcerated individuals do not qualify for a stimulus check. Specifically, the instructions state that, “payment made to someone who is incarcerated should be returned to the IRS.”
The section of the US Code that the IRS cited in FAQ #15 for the definition of incarcerated pertains to monthly checks. You don't get a monthly check if you were incarcerated some time during the month for which the benefits accrue.
Here, we're talking about a one time check. Does "is incarcerated" mean on the one day that the check is cut, or the one day that one receives the check, or the one day on which it is cashed? Does it mean anytime from the day the CARES Act was signed into law until the end of 2020? Does it mean anytime in tax year 2020, since this is just an advance on a 2020 tax credit?
The bigger question, though, is by what authority is the IRS declaring these individuals ineligible (whoever they "is")?
Comments
https://slate.com/business/2020/06/irs-stimulus-check-dead-people-yawn.html
do-people-in-prison-qualify-for-stimulus-check-payments
Also, if you haven't received your stimulus check, you may have been incorrectly identified by Turbo Tax or H&R Block as someone's dependent even though you were not . This fact was personally verified yesterday by an IRS specialist.
https://www.irs.gov/coronavirus/economic-impact-payment-information-center
Trying to understand this disqualification leads us to a familiar observation: it depends on what the meaning of the word "is" is.
The section of the US Code that the IRS cited in FAQ #15 for the definition of incarcerated pertains to monthly checks. You don't get a monthly check if you were incarcerated some time during the month for which the benefits accrue.
Here, we're talking about a one time check. Does "is incarcerated" mean on the one day that the check is cut, or the one day that one receives the check, or the one day on which it is cashed? Does it mean anytime from the day the CARES Act was signed into law until the end of 2020? Does it mean anytime in tax year 2020, since this is just an advance on a 2020 tax credit?
The bigger question, though, is by what authority is the IRS declaring these individuals ineligible (whoever they "is")?
AEI blog post, IRS has no authority to deny rebates to the incarcerated and the recently deceased
https://www.aei.org/economics/irs-has-no-authority-to-deny-rebates-to-the-incarcerated-and-the-recently-deceased/
Prison Policy Initiative: Since you asked: Should incarcerated people be receiving stimulus payments?
https://www.prisonpolicy.org/blog/2020/05/18/checks/