Fed Sent $1.4B In Stimulus Checks To More Than A Million Deceased People In Rush To Disburse Funds
The GAO report makes clear how the mistakes were made by sending checks to people who had died since filing tax returns. Currently, as the government considers a second round of stimulus checks, there are no plans to recoup the first payments.
The Washington Post:
More Than 1 Million Coronavirus Stimulus Checks Went To Dead People According To GAO
The federal government sent coronavirus stimulus payments to almost 1.1 million dead people totaling nearly $1.4 billion, Congress’s independent watchdog reported Thursday. The Washington Post previously reported that the Treasury Department and Internal Revenue Service disbursed some payments of up to $1,200 each to dead people. But the astonishing scope of the problem had not been known. (Werner, 6/25)
AP:
Audit: US Sent $1.4B In Virus Relief Payments To Dead People
While the government has asked survivors to return the money, it’s not clear they have to. It also may be a politically sensitive gambit for the Treasury Department to aggressively seek to claw back the money, especially because some recipients may have died in the early months of this year from COVID-19. When billions in aid are rushed out the door in a crisis, “these are the kinds of things that happen,” said Lisa Gilbert, executive vice president of advocacy group Public Citizen. (Gordon, 6/25)
Politico:
The IRS Thought It Wasn't Allowed To Withhold Stimulus Checks From The Dead. So It Paid More Than 1 Million Of Them.
An unnamed Treasury official offered a conflicting account of how the department learned of the payments, the report indicates, telling GAO it was not aware of the issue “until it was reported in various media outlets.” “Treasury officials said that upon learning that payments had been made to decedents, Treasury and IRS, in consultation with counsel, determined that a person is not entitled to receive a payment if he or she is deceased as of the date the payment is to be paid.” (Faler, 6/25)
