A government watchdog agency reported that $1.4B in stimulus check money was incorrectly sent to people who were no longer alive.
Earlier this week the Government Accountability Organization (GAO) released a report containing some shocking findings. The US Government apparently sent checks totaling $1.4 Billion dollars to over a million people who’d already died.
And they want their money back.
Under the 2 Trillion dollar stimulus act known formally as CARES, the US Government injected monies into the US economy in an attempt to thwart the damage caused by the coronavirus pandemic.
The government was moving fast, real fast, and ultimately sent $1.4 Billion dollars to folks who’d since died. It now appears that IRS was aware this was a possibility but ultimately decided to favor the speedy release of the funds versus instituting some additional controls that may have prevented spurious payments.
An interesting exchange unfolded, captured on the video below, where the GAO administrator explains how this unfolded.
Ultimately, the IRS will attempt to recoup the funds starting with simple guidance: don’t cash the check, and in fact mail it back to the government. It’s unclear, however, what efforts the government might use to more forcefully recover the monies should folks not voluntarily return them.
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