Economic Impact Payment Information Center
A10. No. A Payment made to someone who died before receipt of the Payment should be returned to the IRS by following the instructions in the Q&A about repayments. 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.
More About the Economic Impact Payment
A41. You should return the payment as described below.
If the payment was a paper check:
- Write "Void" in the endorsement section on the back of the check.
- Mail the voided Treasury check immediately to the appropriate IRS location listed below.
- Don't staple, bend, or paper clip the check.
- 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:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
- 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.
- Include a brief explanation of the reason for returning the EIP.
IRS Mailing Address:
If you live in Maine, Maryland, Massachusetts, New Hampshire, or Vermont mail the voided check to:
Internal Revenue Service
310 Lowell Street,
Andover MA 01810
For all other States Visit the IRS Site:
PP loan Accounting Compliance
As we all know, the PPP Loan may be forgiven if used for qualified expenses over the 8-week covered period. The covered period begins the date the deposit is made to your account. The qualified expenses include payroll expenses, mortgage interest*, rent*, and utilities*. * agreement must be in place before February 15, 2020.
The SBA, in Federal Register Vol 85, No 73 p20811-20817 defines payroll as follows:
Gross Wages – includes most normal items – salary, vacation, sick pay, severance, etc,
Employer portion of group health insurance,
Employer payment of retirement benefits
State and local taxes on wages (MD Unemployment)
Specifically excluded is the employer matching FICA and Medicare.
Now comes the interesting part – how do account for these expenses? In speaking with 2 payroll companies and 2 banks, there is no
When we run payroll at CTA, our Payroll service withdraws one lump sum from our business checking. That one lump sum includes net paychecks, 941 deposits, MD withholdings, PA withholdings, PA local withholding, Federal Unemployment, MD Unemployment, and the processing fee. For some clients, net pay and payroll taxes are separate withdrawals. But you get the point, the payroll activity is not the same as the PPP loan “payroll” and needs to be reconciled, especially when you have employee withholdings for 401lk) and