The IRS will be collecting stimulus overpayments to taxpayers

On Behalf of | Mar 23, 2022 | IRS Tax Law

Texas taxpayers get ready because the IRS wants you to pay back some stimulus checks. The IRS states that because of the swiftness in the distribution of stimulus payments, some people may have received checks that they shouldn’t have gotten.

These people will be asked to pay the money back, and in true IRS fashion, those who do not pay back the money owed could see further tax penalties.

This move by the IRS is nationwide and many citizens anticipated it. Most people are honest and would have returned any monies that weren’t rightfully theirs, but for those who require extra encouragement, the IRS may initiate collection action.

If you received a stimulus check in error, what should you do?

If you received an extra stimulus payment by mail or direct deposit, you can write void on the check and send it back to the IRS. You can also notify the IRS of the erroneous deposit and have them deduct the money from your account.

If you accidentally cashed the extra check, be prepared to pay it back fully. Don’t panic because the IRS will work with you. If the IRS notifies you of an overpayment but you already used the funds, they’re ready to help you resolve the issue.

Here are a few ways that you might have received an overpayment from the stimulus:

  • You earned over the eligibility limit set for stimulus payments.
  • You received a stimulus intended for a deceased person.
  • You’re a non-citizen of the U.S.
  • You received a duplicate stimulus check.
  • You’re a non-resident alien.

If any of the above apply to you, the IRS will likely contact you for a resolution. The IRS can collect owed monies from you without your authorization.