Taxpayer Advocate Will Take on Cases Regarding Missing Stimulus Payments

Chris Gaetano
Published Date:
Aug 3, 2020
GettyImages-494777797 Erin Collins IRS Taxpayer Advocate KPMG (Blog)

While Congress continues negotiations on the next pandemic aid bill and a new round of direct cash payments, the Taxpayer Advocate Service (TAS) pointed out that numerous taxpayers still haven't received their Economic Impact Payments (EIP) from the first round, under the CARES Act. The service, led by National Taxpayer Advocate Erin M. Collins, issued a notice announcing that it will being assisting people in dealing with the IRS over this situation.

Previously, the TAS was unable to do so, as the IRS lacked procedures for correcting errors in the process, in light of limited operations. But the service said that  the IRS has now come out with a set of protocols on what to do in five different scenarios in which taxpayers did not  receive their money:

Scenario #1: Eligible individuals who used the Non-Filer Tool and claimed at least one qualifying child but did not receive the qualifying child portion of the Economic Impact Payment (EIP). The IRS will issue supplemental EIPs with respect to those qualifying children in the coming weeks.

Scenario #2: Eligible individuals who filed Form 8379, Injured Spouse Allocation (or can complete and return the Form 8379), and did not receive their EIP. The IRS will issue the injured spouse’s portion of the EIP in the coming weeks.

Scenario #3: Eligible individuals whose EIP was based on a 2018 or 2019 tax return where the IRS adjusted the return for a math error that negatively impacted the original amount of the EIP (e.g., Qualifying Child, Adjusted Gross Income, filing status). The IRS can work with the taxpayer to resolve the math error and, if appropriate, issue a payment for the additional EIP amount.

Scenario #4: Eligible individuals who were victims of identity theft and did not receive an EIP or did not receive the correct EIP amount. The IRS will adjust the EIP once the identity theft issue is resolved.

Scenario #5: Eligible individuals who did not receive an EIP because they filed a joint return with a deceased or incarcerated spouse and their EIP payment was not issued, was returned, or was canceled. The IRS will recalculate the EIP and issue it only to the non-deceased/non-incarcerated spouse.

Because these protocols now exist, the TAS can help people through the process of correcting errors. It plans to begin doing so starting Aug. 10, and it will soon be releasing plans that go over the specifics as to how people can request and qualify for assistance from the TAS.

"TAS takes seriously its role as the safety net for taxpayers, and that job is even more critical now when so many Americans are faced with economic uncertainty and desperately need the EIP funds that Congress provided," said the TAS notice.

Click here to see more of the latest news from the NYSSCPA.