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Lawmakers Encourage Return of Improper Stimulus Payments 

AUG. 11, 2020

Lawmakers Encourage Return of Improper Stimulus Payments 

DATED AUG. 11, 2020
DOCUMENT ATTRIBUTES
  • Authors
    Collins, Douglas Allen
    Norman, Rep. Ralph
    Hice, Rep. Jody B.
    Perry, Rep. Scott
    Gaetz, Rep. Matt
    Grothman, Rep. Glenn
    Hern, Rep. Kevin
    Davidson, Rep. Warren
    Marshall, Sen. Roger W.
    Olson, Pete
  • Institutional Authors
    U.S. House of Representatives
  • Subject Area/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2020-30862
  • Tax Analysts Electronic Citation
    2020 TNTF 155-17

August 11, 2020

The Honorable Steve Mnuchin
Secretary of the Treasury
Department of the Treasury
1500 Pennsylvania Ave. NW
Washington, D.C. 20220

Dear Secretary Mnuchin,

Thank you for your diligent work in securing relief for American workers, families, and businesses during the ongoing public health crisis. Now more than ever, we must work together to ensure the Federal response to the coronavirus outbreak is meaningful and rational.

As you work to provide assistance to families and businesses impacted by the economic fallout of the pandemic, we want to ensure you are aware of recent reports finding that tens of thousands of taxpayer dollars were mistakenly sent to foreign workers despite their ineligibility to receive stimulus checks under the CARES Act. If these reports are true, it is imperative that these erroneously sent funds are returned to the Internal Revenue Service (IRS) immediately. Further, we trust that, in dispensing any potential future payments, the Department of the Treasury (Treasury) will work with the IRS to ensure those checks be sent only to American citizens and resident aliens, as intended.

As you know, the initial round of economic impact payments served two main purposes: to uplift American workers and families needing support during the early months of the coronavirus outbreak and to encourage Americans to spend money in their communities in an effort to stimulate the economy. Unfortunately, the economic impact payments sent to foreign workers achieved neither goal. In fact, tax firms have confirmed that many of the individuals that received stimulus checks, despite being in the U.S. on temporary work visas, spent the funds in their home countries, including China.

In the weeks following the first stimulus checks being sent to American households, there were several reports of checks being sent in error, and the IRS made clear checks erroneously sent to deceased individuals were to be returned to the IRS. Unfortunately, it has taken months to uncover that thousands of other checks were sent erroneously to ineligible recipients and have not been returned. While we understand the IRS has asked these individuals to return the stimulus checks they received, it is imperative that we ensure the tens of thousands of dollars ineligible individuals were sent are returned before any future aid is dispersed.

Our economic response to the public health crisis must be meaningful, but it also must be measured to ensure we are continuing to be good stewards of taxpayer dollars. For that reason, it is vital that the Treasury Department and IRS work cohesively to ensure no economic impact payment is sent to ineligible non-citizens and that the Department of the Treasury work with the IRS to direct the return of any economic impact payment sent in error to non-citizens.

Thank you for your attention to this letter and for your consideration of our request.

Sincerely,

Doug Collins
Member of Congress

Jody Hice
Member of Congress

Matt Gaetz
Member of Congress

Kevin Hern
Member of Congress

Roger Marshall
Member of Congress

Ralph Norman
Member of Congress

Scott Perry
Member of Congress

Glenn Grothman
Member of Congress

Warren Davidson
Member of Congress

Pete Olsen
Member of Congress

DOCUMENT ATTRIBUTES
  • Authors
    Collins, Douglas Allen
    Norman, Rep. Ralph
    Hice, Rep. Jody B.
    Perry, Rep. Scott
    Gaetz, Rep. Matt
    Grothman, Rep. Glenn
    Hern, Rep. Kevin
    Davidson, Rep. Warren
    Marshall, Sen. Roger W.
    Olson, Pete
  • Institutional Authors
    U.S. House of Representatives
  • Subject Area/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2020-30862
  • Tax Analysts Electronic Citation
    2020 TNTF 155-17
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