Holmes & Stice PLC

06/23/2022

After many years at our 2060 Fort Henry Drive, Kingsport location we have moved to 2404 N. John B. Dennis Hwy, Kingsport, TN 37660. Our new location is a one level building with ample parking. Due to the growth that our office has experienced over the past few years, we have recently added two new attorneys to our staff. Call us today at 423-246-9553 for more information or visit us online www.holmes-stice.com!

06/14/2022

We've moved! Our new address is 2404 N. John B. Dennis Hwy., Kingsport, TN 37660

05/09/2020

Follow-up to Previous Notice Re: Stimulus Checks Sent to Deceased Taxpayers

On May 6, 2020 the IRS issued an answer to a Frequently Asked Question 10:

𝐃𝐨𝐞𝐬 𝐬𝐨𝐦𝐞𝐨𝐧𝐞 𝐰𝐡𝐨 𝐡𝐚𝐬 𝐝𝐢𝐞𝐝 𝐪𝐮𝐚𝐥𝐢𝐟𝐲 𝐟𝐨𝐫 𝐭𝐡𝐞 [𝐒𝐭𝐢𝐦𝐮𝐥𝐮𝐬] 𝐏𝐚𝐲𝐦𝐞𝐧𝐭?

𝐀𝐧𝐬𝐰𝐞𝐫: 𝙉𝙤.

A Payment made to someone who died before receipt of the Payment should be returned to the IRS by following the instructions listed below.

Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000.

𝐇͟𝐨͟𝐰͟ ͟𝐭͟𝐨͟ ͟𝐑͟𝐞͟𝐭͟𝐮͟𝐫͟𝐧͟ ͟𝐭͟𝐡͟𝐞͟ ͟𝐏͟𝐚͟𝐲͟𝐦͟𝐞͟𝐧͟𝐭͟:͟

𝐈𝐟 𝐭𝐡𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐰𝐚𝐬 𝐚 𝐩𝐚𝐩𝐞𝐫 𝐜𝐡𝐞𝐜𝐤:
1. Write "Void" in the endorsement section on the back of the check.
2. Mail the voided Treasury check immediately to the appropriate IRS location listed below.
3. Don't staple, bend, or paper clip the check.
4. Include a note stating the reason for returning the check.

𝐈𝐟 𝐭𝐡𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐰𝐚𝐬 𝐚 𝐩𝐚𝐩𝐞𝐫 𝐜𝐡𝐞𝐜𝐤 𝐚𝐧𝐝 𝐲𝐨𝐮 𝐡𝐚𝐯𝐞 𝐜𝐚𝐬𝐡𝐞𝐝 𝐢𝐭, 𝐨𝐫 𝐢𝐟 𝐭𝐡𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐰𝐚𝐬 𝐚 𝐝𝐢𝐫𝐞𝐜𝐭 𝐝𝐞𝐩𝐨𝐬𝐢𝐭:
1. Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
2. Write on the check/money order made payable to “U.S. Treasury” and write 2020EIP, and the taxpayer identification number (social security number, or individual taxpayer identification number) of the recipient of the check.
3. Include a brief explanation of the reason for returning the EIP.

𝐅𝐨𝐫 𝐲𝐨𝐮𝐫 𝐓𝐞𝐧𝐧𝐞𝐬𝐬𝐞𝐞 𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐩𝐚𝐩𝐞𝐫 𝐜𝐡𝐞𝐜𝐤, 𝐮𝐬𝐞 𝐭𝐡𝐞 𝐈𝐑𝐒 𝐦𝐚𝐢𝐥𝐢𝐧𝐠 𝐚𝐝𝐝𝐫𝐞𝐬𝐬:
Memphis Refund Inquiry Unit�5333 Getwell Rd Mail�Stop 8422 �Memphis, TN 38118

For more information and answers to frequently asked questions, go to:

Answers to frequently asked questions about Economic Impact Payments (coronavirus stimulus checks). These questions and answers will be updated periodically.

05/07/2020

“𝐌𝐲 𝐝𝐞𝐜𝐞𝐚𝐬𝐞𝐝 [𝐫𝐞𝐥𝐚𝐭𝐢𝐯𝐞] 𝐣𝐮𝐬𝐭 𝐫𝐞𝐜𝐞𝐢𝐯𝐞𝐝 𝐚 $𝟏,𝟐𝟎𝟎.𝟎𝟎 𝐬𝐭𝐢𝐦𝐮𝐥𝐮𝐬 𝐜𝐡𝐞𝐜𝐤 𝐢𝐧 𝐭𝐡𝐞 𝐦𝐚𝐢𝐥! 𝐖𝐡𝐚𝐭 𝐝𝐨 𝐈 𝐝𝐨?”

Yesterday alone my office received three different phone calls like this, in which the stimulus check was either mailed or deposited directly into an account that was previously used by the deceased relative, normally a joint account with a surviving spouse.

Common sense tells us that since a deceased person can’t use a stimulus check the money should be returned to the US Treasury.

𝘏𝘰𝘸𝘦𝘷𝘦𝘳, since we’re dealing with the federal government who just sent out millions of tax-payer dollars to the non-living, we need to throw common sense out the window and do a little research to determine the position of the IRS/Government on this issue.

𝐂𝐔𝐑𝐑𝐄𝐍𝐓 𝐏𝐎𝐒𝐈𝐓𝐈𝐎𝐍 𝐎𝐅 𝐓𝐇𝐄 𝐔.𝐒. 𝐓𝐑𝐄𝐀𝐒𝐔𝐑𝐘:
“We are still working on the issue.”

𝐖𝐇𝐀𝐓 𝐇𝐀𝐏𝐏𝐄𝐍𝐄𝐃?
In the CARES ACT, Congress failed to exclude deceased folks from getting checks and failed to implement a “claw-back” mechanism for the funds to be returned to the Treasury.

𝐌𝐘 𝐑𝐄𝐂𝐎𝐌𝐌𝐄𝐍𝐃𝐀𝐓𝐈𝐎𝐍:
• If you received a check, do not cash it.
• If you received a direct deposit, do not spend the funds.
• More likely than not, if you cash the funds, you will be required to pay interest when such funds are returned to the Treasury.

The Treasury will provide guidance in the days to follow. They could determine that it’s easier and more compassionate to allow families of a deceased taxpayer to keep the funds during these “unprecedented times”. However, I believe they will follow the IRS procedure of returning an Erroneous Refund, (see Topic No. 161 copied from the IRS website, below).

Either way, do not forget nor neglect your own personal ethics that should not allow you to take something that is meant to benefit those who are truly struggling among us.

Thanks for the questions, and I hope this has been helpful!

𝙅𝙖𝙢𝙚𝙨 𝙒. 𝙃𝙤𝙡𝙢𝙚𝙨, 𝙅.𝘿., 𝘾.𝙋.𝘼.
𝙃𝙤𝙡𝙢𝙚𝙨 & 𝙎𝙩𝙞𝙘𝙚 𝙋𝙇𝘾

𝐈𝐍𝐅𝐎𝐑𝐌𝐀𝐓𝐈𝐎𝐍 𝐃𝐈𝐑𝐄𝐂𝐓𝐋𝐘 𝐅𝐑𝐎𝐌 𝐈𝐑𝐒 𝐖𝐄𝐁𝐒𝐈𝐓𝐄:
𝑻𝒐𝒑𝒊𝒄 𝑵𝒐. 161: 𝑹𝒆𝒕𝒖𝒓𝒏𝒊𝒏𝒈 𝒂𝒏 𝑬𝒓𝒓𝒐𝒏𝒆𝒐𝒖𝒔 𝑹𝒆𝒇𝒖𝒏𝒅- 𝑷𝒂𝒑𝒆𝒓 𝑪𝒉𝒆𝒄𝒌 𝒐𝒓 𝑫𝒊𝒓𝒆𝒄𝒕 𝑫𝒆𝒑𝒐𝒔𝒊𝒕

"It's an erroneous refund if you receive a refund you're not entitled at all or for an amount more than you're entitled to."

"If your refund was a paper Treasury check and hasn't been cashed:
1. Write "Void" in the endorsement section on the back of the check.
2. Submit the check immediately, but no later than 21 days, to the appropriate IRS location listed below. The location is based on the city (possibly abbreviated) on the bottom text line in front of the words TAX REFUND on your refund check.
3. Don't staple, bend, or paper clip the check.
4. Include a note stating "Return of erroneous refund check" and give a brief explanation of the reason for returning the refund check.

If your refund was a paper Treasury check and has been cashed:
1. Submit a personal check, money order, etc., immediately, but no later than 21 days, to the appropriate IRS location listed below. The location is based on the city (possibly abbreviated) on the bottom text line in front of the words TAX REFUND on your refund check. If you no longer have access to a copy of the check, call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) (see telephone and local assistance for hours of operation) and explain to the assistor that you need information to repay a cashed refund check.
2. Write on the check/money order: Payment of Erroneous Refund, the tax period for which the refund was issued, and your taxpayer identification number (social security number, employer identification number, or individual taxpayer identification number).
3. Include a brief explanation of the reason for returning the refund.
4. Cashing an erroneous refund check may result in interest due the IRS.

If your refund was a direct deposit:
1. Contact the Automated Clearing House (ACH) department of the bank/financial institution where the direct deposit was received and have them return the refund to the IRS.
2. Call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) to explain why the direct deposit is being returned.
3. Interest may accrue on the erroneous refund.”

[https://www.irs.gov/taxtopics/tc161]

Topic No. 161 Returning an Erroneous Refund – Paper Check or Direct Deposit

05/06/2020

James W. Holmes, Attorney, C.P.A.

12/09/2016

Michael D. Stice, Attorney, EPLS, AEP