Money Mistake: IRS wants stimulus payments to the dead returned

LOUISVILLE, Ky. (WDRB) -- A Louisville man still waiting on his own stimulus check just received one for his dead mother.

It's a government mistake happening all over the country.

"I went to check the mail box earlier this week," Robert Holderbaum said. "Me and the wife kind of got excited, because we figured we was getting our stimulus check, and it's actually made out to my mother."

Patricia Holderbaum battled dementia in her final days and died in January at age 79.

"She was a housewife her entire life. She had four kids and was married 56 years," Holderbaum said. "She was a hell of a woman."

Holderbaum said he cancelled her Medicare and Social Security and thought he'd taken care of his mother's affairs until the stimulus payment came Monday.

"It's kind of ironic people that's been gone four months getting a stimulus check, and I'm waiting on mine."

An IRS spokesman would only confirm that the mistake is happening throughout the country to an untold number of people.

In a rush to boost the economy the government sent stimulus payments to 2018 and 2019 taxpayers who filed online first and then those with social security but it didn't crosscheck for the dead.

Now millions wait for a stimulus check -- some dead broke -- as people who have already passed away receive them first.

"It's wreaking havoc with these people trying to figure out how to how to administer someone's estate," elder law attorney Shari Polur said.

She said she's had at least three clients call asking what to do and it's now a common topic among those who routinely practice estate and probate cases.

"Dead people cannot stimulate the economy. They cannot spend that money," Polar said. "In my opinion that money does not belong to the estate and does not belong to the heirs of the estate and if no one has the legal right to it then it should be returned to the government. "

Wednesday the IRS released instructions saying stimulus checks sent to the deceased should be returned.

If the payment was a paper check:

Write "Void" in the endorsement section on the back of the check.
Mail the voided Treasury check immediately to the appropriate IRS location listed below.
Don't staple, bend, or paper clip the check.
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:

Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
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.
Include a brief explanation of the reason for returning the EIP.

The appropriate IRS mailing address varies by state.

For your paper check, here are the IRS mailing addresses to use based on the state:

Kentucky residents should remit payments to:

Atlanta Refund Inquiry Unit

4800 Buford Hwy

Mail Stop 112

Chamblee, GA 30341

Indiana residents should remit payment to:

Kansas City Refund Inquiry Unit

333 W Pershing Rd

Mail Stop 6800, N-2

Kansas City, MO 64108