IRS Seizes Funds Sent To Inmates From COVID-19 Relief Package
Written by Site Hub on June 25, 2020
When Congress passed the COVID-19 relief package in May, over $100,000 in the for of stimulus checks went to incarcerated individuals. While the legislation doesn’t exactly exclude inmates, the IRS is actively seizing the funds that were sent, using the guidelines on Social Security to justify their action.
The Social Security Act refuses incarcerated people from receiving certain types of old-age survivor and insurance benefits.
IRS spokesperson Eric Smith released a statement to the Associated Press, saying:
“I can’t give you the legal basis. All I can tell you is this is the language the Treasury and ourselves have been using,” IRS spokesman Eric Smith said. “It’s just the same list as in the Social Security Act.”
Kelly Erb, a tax attorney wrote about the event on her website and doesn’t think the IRS is in the right.
“I think it’s really disingenuous of the IRS,” Erb said Tuesday. “It’s not a rule just because the IRS puts it on the website. In fact, the IRS actually says that stuff on its website isn’t legal authority. So there’s no actual rule — it’s just guidance — and that guidance can change at any time.”
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