You’re assuming that an e-filed return will be rejected? Have you tried it? Otherwise, file a paper return for the parents. In past years IRS has not rejected dependency claims that appear on two returns, when one of them is for the taxpayer being claimed.

At the same time, file an amended return for the kid. I’m not aware of any IRS procedure that allows them to claw back the EIP, though. He could try sending a check for $1,200 but I’m not sure they would know what to do with it. IRS might come up with an FAQ for situations like this, before the end of the year, so maybe wait.

Yes, IRS had 10 million pieces of unopened mail before they started opening Service Centers again last month. Only 5 million of those were returns. Most of them were 1040s, but in a busy month they plan to process 5 million of those anyway. So, they are a month behind. Let’s not be Chicken Little about the current situation. In most places, state revenue departments are keeping up with the situation (although it helps that the biggest Covid Deniers are in Texas and Florida).