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#2234917 - 04/15/20 09:23 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
simplycomplying Offline
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Joined: May 2014
Posts: 14
following to see what are your suggestions if a couple filed jointly for 2019 he died in 2020 what do we do with said deposit?

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Deposits and Payments
#2234942 - 04/16/20 02:09 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
Let them go - there are no claw back provisions in the CARES Act.
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#2236306 - 05/07/20 02:58 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
simplycomplying Offline
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just saw on the IRS website that those who are deceased or in jail are not eligible for payment! The only info they give is for the person to return the paper check or issue a personal check to the IRS. are we still not required to send back any of these?

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#2236310 - 05/07/20 03:30 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
rlcarey Online
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rlcarey
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Galveston, TX
I am not sure what you mean. Could you refuse to cash a check or accept a check for deposit to a deceased person? Sure.

I am not sure what you mean by send them back? You are not going to confiscate the check from the customer.
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#2236319 - 05/07/20 04:47 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
TryingtoComply Offline
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Joined: Apr 2013
Posts: 2,199
The West
I'm sure she is referring to ACH payments. We have a similar situation. We received $2,400 to the account of a deceased person (3/20/20). The spouse is the beneficiary on account.

If she received a paper check, she would return $1,200 according to the FAQ. So, the question is, do we return the whole amount or just the $1,200 she is not entitled to?
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#2236320 - 05/07/20 05:20 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
simplycomplying Offline
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according to the FAQ any amount received for a deceased person by direct deposit should be returned by personal check. either the total amount or the portion (if joint payment) would be returned.

A10. No. A Payment made to someone who died before receipt of the Payment 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 account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000

A41. You should return the payment as described below.
If the payment was a paper check:
1. Write "Void" in the endorsement section on the back of the check.
2. Mail the voided Treasury check immediately to the appropriate IRS location listed below.
3. Don't staple, bend, or paper clip the check.
4. Include a note stating the reason for returning the check.
If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:
1. Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
2. 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.
3. Include a brief explanation of the reason for returning the EIP.
For your paper check, here are the IRS mailing addresses to use based on the state:


am I interpreting this correct in thinking the returning of the portion is the customers responsibility....

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#2236321 - 05/07/20 05:23 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
chenin Offline
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The way I read it, it is the customers responsibility to return the funds.

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#2236323 - 05/07/20 05:51 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
rlcarey Online
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Galveston, TX
Unless an ACH comes into a closed account, I just don't think the bank has a dog in this hunt.
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#2236326 - 05/07/20 06:09 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
TryingtoComply Offline
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The West
After reviewing, I agree. Thanks all!
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#2236338 - 05/07/20 07:38 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
CloudShape Offline
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Joined: Oct 2002
Posts: 525
Edge of Sanity
I have to admit, this is driving me crazy. I just wish they would make up their minds!

All along it has been the IRS knows what it is doing and is only issuing checks to those who qualify. So today we were presented with a check payable to spouse and spouse DECD and the surviving spouse wanted to deposit it into his account. So I checked the FAQ and found the update above. Hello! If they are not supposed to get the funds if they are deceased, why did you issue a check to a person you knew was deceased??!! And the update was yesterday - how long have they been issuing these EIPs?! Sheesh - get your act together already. . . .

Okay, rant over. We pointed the customer to the IRS information on returning the funds for the deceased spouse. Not our problem. . . .
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#2236339 - 05/07/20 07:45 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
HappyGilmore Offline
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Pulling people out of the ditc...
the IRS has clearly put the burden on the account holder for any EIP received in error, not the bank. don't you take that burden on as the bank, leave it the customers, period.
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#2236356 - 05/07/20 09:07 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
simplycomplying Offline
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That is what I wanted to hear!!! thank you!

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#2236360 - 05/07/20 09:33 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
HappyGilmore Offline
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Pulling people out of the ditc...
from a local Nacha affiliate...

On May 6, 2020, the Internal Revenue Services advised that an Economic Impact Payment to a customer who died before the payment was received should be returned via check by the family or representative (FAQ #41 found on the website below includes mailing addresses for returning payments).
The IRS has not said that a bank or credit union has any obligation to return funds from an ACH Direct Deposit paid to a deceased person.
The information provided by Nacha, the Federal Reserve Bank, and the Treasury is that such payments should be treated as tax refund payments and are not subject to reclamation. “Eligibility scrubs” were made prior to disbursement to reduce incidents of payments to ineligible or deceased individuals.
Should an individual attempt to cash a check that is payable to a deceased person and no executor or estate has been established, the FI should refuse to cash the payment. The recipient should seek IRS guidance.
Each Financial Institution will need to decide how to interpret inconsistencies from IRS and Treasury.
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#2236510 - 05/11/20 08:46 PM Re: COVID-19 STIMULUS CHECKS HappyGilmore
ledfoot Offline
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Joined: May 2004
Posts: 93
Georgia
So if a customer brings in a stimulus check made payable to a deceased person and either a joint person or executor of the estate, do we need to turn down the deposit or let them deposit it and the customer handle IRS? At first IRS was saying they were eligible to keep it and now they're required to send it back. Where exactly does the bank's responsibility end and the customer's begin? In other words is it up to the bank to decide what's eligible and what's not?
It's so confusing. Customers are already complaining if we don't accept and refer to the original eligibility requirements. Already had one complaint sent to the regulators...
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#2236511 - 05/11/20 08:54 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
rlcarey Online
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rlcarey
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Galveston, TX
If you can get the proper endorsements on any physical checks presented, I would not refuse them. It is a little hard to get a dead person's signature however.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2236514 - 05/11/20 09:48 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
Christy C Offline
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Joined: Apr 2020
Posts: 35
Wouldn't an endorsement by the Executor be a sufficient and legal endorsement on behalf of said dead person? This comes up daily and now the IRS is backpeddling because they messed up. We've been presented with these checks for weeks and frankly, I want the families to keep the money just for the headache. Check is made jointly to DECD and Executor.
Last edited by Christy Campbell; 05/11/20 09:49 PM.
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#2236517 - 05/11/20 10:44 PM Re: COVID-19 STIMULUS CHECKS ComplianceGurl, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
It is not up to the bank to figure it our whether the customer gets the money or not. If the IRS wants the money back, they will go after the family.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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