CLIENT ALERT: Stimulus Checks to Deceased Individuals
There has been a lot of confusion for families who have received an IRS stimulus payment directed to a deceased individual. If an individual died before receipt of the stimulus payment, the IRS is requiring the payment to the deceased individual to be returned to the U.S. Treasury Department. The IRS has been offering guidance on these matters on its website (https://www.irs.gov/coronavirus/economic-impact-payment-information-center), and the following is the most recent guidance offered by the IRS.
If payment was made to a deceased individual that was single, the entire payment must be returned. If the payment was made to joint filers and only one spouse was deceased, the portion of the payment intended for the deceased spouse should be returned. For example, if a single deceased individual received $1,200, the entire amount would need to be returned. If joint filers received $2,400 and only one spouse was deceased, then $1,200 would need to be returned.
If payment was made by a paper check, the following steps should be taken to return payment:
(1) write “VOID” in the endorsement section on the back of the check;
(2) mail the voided check to the appropriate IRS location (see below);
(3) do not staple, bend or paper clip the check; and
(4) include a note stating the reason for returning the check.
If payment was a paper check that was cashed or if the payment was a direct deposit, the following steps should be taken to return payment:
(1) submit a personal check, money order, etc., to the appropriate IRS location (see below);
(2) write on the check/money order made payable to “U.S. Treasury” and write 2020EIP and the taxpayer identification number or social security number of the recipient on the check; and
(3) include a brief explanation for returning the EIP.
For New York State, the check with “VOID” or the repayment check should be mailed to:
Brookhaven Internal Revenue Service
1040 Waverly Ave.
Holtsville, NY 11742
For Pennsylvania, the check with “VOID” or the repayment check should be mailed to:
Philadelphia Internal Revenue Service
2970 Market St.
Philadelphia, PA 19104
The Attorneys at Levene Gouldin & Thompson, LLP are available to discuss all of your estate planning questions. We also have procedures in place to meet your legal needs while keeping everyone safe in the process. Please feel free to contact us today.