Please note!

This fact brief was originally published as an experiment to test the concepts behind fact briefs.

Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

FACT BRIEF

Will people who received coronavirus relief payments in error be penalized if they don’t return them?

Thursday, August 13, 2020

By Allegra Taylor

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When the Internal Revenue Service sent out payments as part of the coronavirus relief package passed in March, some were mistakenly sent to deceased individuals and foreign workers who were ineligible.

The IRS later announced that individuals who received a payment in error should return it to their local IRS location, and posted detailed instructions on how to do so. Checks issued to deceased individuals have since been cancelled and no longer need to be returned if they weren’t cashed.

Some tax experts have questioned the legality of the IRS recalling the payments, as the original legislation makes no provisions to correct payments made in error.

The IRS website currently does not list any consequences for individuals who don’t return a payment.

This fact brief is responsive to conversations such as this one.

Sources

Politico: IRS mistakenly sends checks to foreign workers

Internal Revenue Service: Coronavirus economic impact payment info center

Forbes: Checks issued to deceased individuals cancelled by IRS

Politico: Coronavirus payments sent to dead should be returned

ABOUT THE CONTRIBUTOR

Gigafact

Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.

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About fact briefs published on Gigafact

Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.