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@The-Tax-Lady wrote:

I don't know about "holding their hand out" as a accurate description of recovering payments made to an individual who was not entitled to the payment.

Why would they want payback on a dependent for 2018 or 2019 that is not on the 2020 return?Dependent EIP $$ was paid for children 0 -16 years old, so chances are they will still be a dependent in 2020, not that it will matter, in my view.

 

 

 

IRS cannot possibly recover all the money sent to those who you deem are "not entitled"  For instance - a married couple that was required to file a 2018 return, one dies in 2019 after 2018 return was filed.  The deceased person was earning a small W2 wage (no federal tax w/held).  The surviving spouse only has SocSec income.  Their 2019 total income is below the filing threshold so no return will be filed.  IRS sent EIP based on 2018 - $2400.    How does IRS know to ask for the $1200 back?     Don't say the preparer should advise them to return it because not all returns are done by paid preparers.  

 I have clients who cannot be claimed as dependents by their parents at the age of 18 because they are earning $75k-$100k in our local industries.  I have clients that received EIP based on the 2018 return which had  a 16yr dependent whom will not be on the 2020 tax return. So while you may not have this in the taxes you prepare don't be so quick to assume no one else does.   Is IRS going to recover the $500?  They weren't entitled.   Only fair if the widow has to return the $1200.