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Federal judge rules against Treasury and IRS again: The incarcerated are entitled to stimulus checks
Source: Washington Post
Federal judge rules against Treasury and IRS again: The incarcerated are entitled to stimulus checks
IRS is forced to extend to Nov. 4 a deadline to allow local, state and federal prisoners to claim tens of millions in stimulus money
By Michelle Singletary
Columnist
10/19/2020, 7:00:51 a.m.
At first, the IRS said inmates were eligible for stimulus payments up to $1,200.
Then the agency walked back that decision, telling correctional facilities to intercept stimulus checks that the agency had already issued. Spouses of the incarcerated were told they had to return the part of relief money intended for incarcerated individuals.
The Coronavirus Aid, Relief, and Economic Security (Cares) Act provides economic impact payments or stimulus payments of up to $1,200 for individuals and $2,400 for taxpayers filing a joint tax return. There was nothing in the law prohibiting prisoners from receiving stimulus payments.
A class-action lawsuit was filed on behalf of incarcerated individuals in local, state and federal facilities arguing that the IRS actions were unlawful. Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California agreed, saying the decision to withhold the stimulus payments was “arbitrary and capricious.” Hamilton ordered the Treasury Department and the IRS to send the relief money and to do so within certain deadlines.
Still not chastened, the Trump administration appealed. Last week, Hamilton again smacked away efforts by the government to stop the distribution of the payments, entering a final summary judgment. And the judge is making the IRS give incarcerated individuals additional time to claim their stimulus money, moving an initial Oct. 30 deadline to Nov. 4.
-snip-
IRS is forced to extend to Nov. 4 a deadline to allow local, state and federal prisoners to claim tens of millions in stimulus money
By Michelle Singletary
Columnist
10/19/2020, 7:00:51 a.m.
At first, the IRS said inmates were eligible for stimulus payments up to $1,200.
Then the agency walked back that decision, telling correctional facilities to intercept stimulus checks that the agency had already issued. Spouses of the incarcerated were told they had to return the part of relief money intended for incarcerated individuals.
The Coronavirus Aid, Relief, and Economic Security (Cares) Act provides economic impact payments or stimulus payments of up to $1,200 for individuals and $2,400 for taxpayers filing a joint tax return. There was nothing in the law prohibiting prisoners from receiving stimulus payments.
A class-action lawsuit was filed on behalf of incarcerated individuals in local, state and federal facilities arguing that the IRS actions were unlawful. Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California agreed, saying the decision to withhold the stimulus payments was “arbitrary and capricious.” Hamilton ordered the Treasury Department and the IRS to send the relief money and to do so within certain deadlines.
Still not chastened, the Trump administration appealed. Last week, Hamilton again smacked away efforts by the government to stop the distribution of the payments, entering a final summary judgment. And the judge is making the IRS give incarcerated individuals additional time to claim their stimulus money, moving an initial Oct. 30 deadline to Nov. 4.
-snip-
Read more: https://www.washingtonpost.com/business/2020/10/19/federal-judge-rules-inmates-must-receive-stimulus-checks/