As Mooney Law has guided families through the estate administration process amid the COVID-19 pandemic, we have addressed the new challenge of how to handle stimulus checks made payable to a deceased loved one. The CARES Act provided payments up to $1,200.00 to qualifying Americans to help weather the pandemic. In the haste of the relief efforts, the CARES Act implementation caused checks to be issued to deceased family members.
In response to this oversight, the IRS has issued guidance that families who received stimulus checks for a deceased family member are to return the money to the IRS. IRS.gov provided the following on May 6, “A payment made to someone who died before receipt of the payments should be returned to the IRS by following the instructions in the Q&A about repayments. Return the entire payment unless the payment was made to joint filers and one spouse had not died before receipt of the payment, in which case, you only need to return the portion of the payment made on the account of the decedent.” While it’s worth noting that the CARES Act does not mandate the return of such funds, the IRS can charge interest and penalties on an improper payment from the IRS.
For those Pennsylvania families who must return the stimulus payments, the IRS has provided specific instructions on how to return the funds.
- For payments made on paper checks that haven’t been cashed:
- Write “Void” in the endorsement section on the back of the check.
- Include a note stating that the check is being returned because the recipient has deceased.
- Make a copy of the check, note and envelope you are sending to the IRS for your records.
- Mail the voided Treasury check and note to Philadelphia Refund Inquiry Unit, 2970 Market Street, DP 3-L08-151, Philadelphia 19104.
- For payments made on paper checks that have been cashed, or for payment made via direct deposit:
- Write on a personal check or money order made payable to “U.S. Treasury” and write “2020EIP” and the Social Security Number of the deceased family member in the memo line.
- Include a note stating that the check is being return because the recipient has deceased.
- Make a copy of the check, note and envelope you are sending to the IRS for your records.
- Mail the personal check or money order, and note to Philadelphia Refund Inquiry Unit, 2970 Market Street, DP 3-L08-151, Philadelphia 19104.
During these difficult times, contact Mooney Law for guidance through the probate and estate administration process at 717-632-4656.
