The IRS explains how ineligible taxpayers should return their coronavirus stimulus payment.
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To our valued clients,

The IRS issued guidance concerning the return of stimulus payments on behalf of persons who are ineligible to receive the payments. This guidance defined ineligible taxpayers as the following:

  • Deceased taxpayers: a payment made to someone who was deceased before the stimulus payment was received. If a joint return was filed and one taxpayer was deceased, and one was not, then one-half of the payment should be returned.
  • Incarcerated taxpayers: any taxpayer who is incarcerated when the payment was received. If a joint return was filed and only one taxpayer was incarcerated, then one-half of the payment should be returned.
  • Undocumented taxpayer: any person who is a non-resident alien in 2020.  

If the payment was a paper check that has not been cashed, the IRS gave the following instructions:

  • Write “void” in the endorsement section on the back of the check.
  • Mail the voided check immediately to the appropriate IRS location.
  • 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 that has been cashed or if the payment was a direct deposit, the IRS recommends the following:

  • Submit a personal check, money order, etc., made payable to the U.S. Treasury.  
  • Write on the check/money order "2020EIP" and the "social security number" of the recipient of the check.
  • Include a brief explanation of the reason for returning the EIP.  

IRS Mailing address for returning stimulus funds:

For Alabama residents, the appropriate mailing address is:

Memphis Internal Revenue Service
5333 Getwell Road
Memphis, TN 38118

Ineligible taxpayers whose address is other than Alabama should use a different address than the one listed above. The appropriate address can be found at economic stimulus payment under the section "More About the Economic Impact Payment" and expanding Q41.

Please call your trusted Machen McChesney advisor if you have any questions.

Best Regards,
Martin D. Williams, CPA,
Managing Partner
Machen McChesney, LLP

Montgomery: 1761 Taliaferro Trail | Montgomery AL 36117

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