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Thousands of foreign workers are mistakenly getting stimulus checks from the IRS, new report says

May 2, 2020, 06:15 IST
Business Insider
FILE - This April 13, 2014, file photo shows the Internal Revenue Service (IRS) headquarters building in Washington. 2019 was another tough year for the IRS, according to a new federal report. Burdened with years of budget cuts and a recent increase in workload to implement a new tax law, the IRS struggled to deliver on its mission in the past fiscal year. The annual report from the Office of Taxpayer Advocate found that in the 2019 fiscal year, among other problems, the agency failed to collect billions in unpaid taxes. (AP Photo/J. David Ake, File)Associated Press
  • Thousands of foreign workers overseas are getting $1,200 stimulus checks due to a glitch in an IRS system.
  • One tax expert says the mistake was likely prompted by the wrong tax forms being used by temporary workers.
  • There are also reports of deceased people receiving stimulus checks in the US.
  • Visit Business Insider's homepage for more stories.
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Thousands of foreign workers are getting stimulus checks due to a software glitch that sent money overseas, Politico first reported on Friday. Many were students who had previously studied in the US.

College-aged workers are getting the $1,200 checks in their accounts, the outlet reported. Some have either decided to keep the money, spend it, or try to return it, as the Internal Revenue Service has not offered guidance on this scenario.

Tax expert Donna Kepley said the mistake was likely caused by temporary workers filing taxes using E-File or other systems meant for US citizens instead of using other forms.

"We were contacted by a lot of our clients all of a sudden, on the one day when they started hitting their accounts or that the checks started going out, asking what to do," Kepley told Politico. "And so we had to try to figure out how to return it, which is not easy."

The foreign workers had reportedly tried contacting the IRS to request information about what to do, but many had only gotten through to automated phone lines. In many cases, they're waiting for further guidance since they don't want to imperil their odds of a future visa.

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Other mistakes had popped up as the IRS races to get Americans their stimulus checks, aimed at shoring up household finances during the coronavirus pandemic. The checks were sent under the CARES Act approved last month.

Some Americans learned in recent weeks that emergency federal cash was going to their dead relatives. In that instance, people who had filed their 2018 or 2019 tax returns but died earlier this year were getting the money through direct deposit.

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