Friday, November 27

The two instances in which authorities can garnish IRS stimulus check


The two instances in which authorities can garnish IRS stimulus check

In some cases, debt collectors can seize a beneficiary’s stimulus check.

Photo: Karolina Grabowska / Pexels

In the only cases where the federal stimulus check that distributes the IRS can be seized by the authorities is for debts with private banks and creditors, and for failure to pay child support.

Although some states like California, New York, Washington, Illinois and Oregon have issued orders to prevent these entities from confiscating funds disposed of under the ley CARES due to defaults ranging from credit cards and private loans, actions have not been enough to stop the intervention of collectors at a general level.

For example, bank debts with the institution that receives the direct deposit of the Internal Revenue Service (IRS), would lead to the funds being seized by the bank.

In situations like the above, potential beneficiaries do not have tools under the aforementioned law to claim.

Another scenario in which the money that is due to you from the federal government may not reach you is because you are not up to date in your alimony payments.

The foregoing is because provisions in the CARES Act establish that a beneficiary’s money can be withheld for the payment of support and redirected to the affected party.

This diversion of funds is done through the Treasury Offset Program (TOP) that collects federal and state debts.

Specific cases on beneficiaries and payment of pension to minors

Related to this matter, the IRS had to catch up in September as it mistakenly garnished the stimulus check for their spouses’ child support payments.

Last August, the agency reported that due to the programmatic error, it had to send confiscated payments to about $ 50,000 beneficiaries.

The IRS clarified that in some cases, those affected did not file a Form 8379, Injured Spouse Allowance, and did not receive their share of the EIP for that reason.

The above form notifies the IRS that you should not withhold money from the “injured spouse” just because your husband or wife has an outstanding obligation.

In summary, the economic impact payments that would be about six months after the distribution of the incentives started respond to the fact that the IRS withheld money from these individuals for past-due spousal support payments when they were not supposed to.

However, the previous case is an exceptional one and is not the rule regarding the seizure of funds from pension debtors.

Neither landlords nor nursing homes can confiscate a check

It should be noted that the IRS is not authorized to confiscate a stimulus check because the recipient owes taxes to the agency. The funds are also not considered taxable income.

Furthermore, landlords and managers of elderly care centers cannot pressure the beneficiary to use the incentive for payment of rent or for services rendered.

Less than two days until the deadline for people who have not received the stimulus check claim it from the IRS using the online tool “Non-filers” it is important that you take the above points into consideration.

In the case of not having filed taxes and being low income, you have until this Saturday, November 21, to ask the IRS for the “economic impact payment”.

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