The taxpayer's spouse died in December, 2019. He received both $1,200 payments in April 2020. He understands he needs to return the $1,200 to the IRS for his spouse but as of March, 2021 he has not yet returned the overpayment.
Taxpayer did not receive EIP 2 for $600. I believe he can recover that via the Recovery Rebate credit worksheet when preparing his 2020 tax return.
Taxpayer is convinced he did not get EIP 2 because he received the overpayment for his wife who passed and the IRS will not give him EIP 2, or the 2021 EIP, until he returns the EIP #1 $1,200.
Taxpayer has also not received EIP #3 to date.
I don't believe the IRS is holding EIP payments for a situation like this. Has anyone had experience or seen guidance that the IRS is holding EIP payments in situations like this?