Guidance on returning economic impact payments sent to the deceased

Under the CARES Act, individuals may be eligible to receive a payment of up to $1,200 as an advance for a 2020 tax credit. These payments are all automatically mailed or directly deposited into individuals’ accounts, including retirees and Social Security recipients that are not required to file an income tax return. But what happens when the recipient is deceased?

Guidance was recently released that if an individual receives an economic impact payment and the individual was deceased at the time of receipt, then the payment must be returned.

Couples receiving an economic impact payment when one spouse is deceased must generally return $1,200 of the payment, which is the decedent’s portion. This amount might be different if the couple’s adjusted gross income exceeded $150,000. In that case, you should speak with your tax professional.

• By check: If the decedent received a check, write “VOID” on the endorsement section and return the check to the appropriate U.S. Treasury location. A brief explanation is required as to why the check is being returned. The explanation can be as simple as the decedent’s name, date of death, and that the decedent was not eligible.
• Cashed checks and direct deposit: A check or money order payable to the “U.S. Treasury” must be issued. In the memo, include “2020 EIP” and the decedent’s social security number. Again, a short statement with the decedent’s name, date of death, and that the decedent was not eligible must be included.

In either case, the check and statement should be sent to the following:

If the decedent lived in	Mailing address
Florida, Louisiana, Mississippi, Oklahoma, Texas	Austin Internal Revenue Service   3651 S Interregional Hwy 35   Austin, TX 78741
District of Columbia, Idaho, Illinois, Pennsylvania, Rhode Island	Philadelphia Internal Revenue Service   2970 Market St.   Philadelphia, PA 19104
Arkansas, Connecticut, Delaware, Indiana, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, Ohio, West Virginia	Kansas City Internal Revenue Service   333 W Pershing Rd.   Kansas City, MO 64108
Maine, Maryland, Massachusetts, New Hampshire, Vermont	Andover Internal Revenue Service   310 Lowell St.   Andover, MA 01810
Georgia, Iowa, Kansas, Kentucky, Virginia	Atlanta Internal Revenue Service   4800 Buford Hwy   Chamblee, GA 30341
New York	Brookhaven Internal Revenue Service   5000 Corporate Ct.   Holtsville, NY 11742
Alaska, Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Oregon, Utah, Washington, Wisconsin, Wyoming	Fresno Internal Revenue Service   5045 E Butler Avenue   Fresno, CA 93888
Alabama, North Carolina, North Dakota, South Carolina, South Dakota, Tennessee	Memphis Internal Revenue Service   5333 Getwell Rd.   Memphis, TN 38118
A foreign country, U.S. possession or territory, or use an APO or FPO address, or file Form 2555 or 4563, or are a dual-status alien.	Austin Internal Revenue Service   3651 S Interregional Hwy 35   Austin, TX 78741

For more information or questions, please contact the McDonald Hopkins attorney listed below.