EIP not received, IRS says it was

Client swears they did not receive the 3rd EIP so we claimed it on their 2021 return. The IRS sent an adjustment letter to remove it. Client stills swears they did not receive it. I guess the paper check was either lost in the mail or something else - but they didn't receive it one way or another. I thought I heard about a claim process but I can't find anything about it. Has anyone else had this happen and know if there's anything that can be done?

Every client that swore to me they never received it eventually found it in their bank account, with a lot of coaching by me. I haven't had one yet that the IRS was wrong on. Not saying it couldn't happen though.

Have them go through every bank statement beginning in March 2021. Of course if they just cashed the check, they won't find evidence of that.

Yea I've had a lot of that too where the EIP and the ACTC are eventually found and I get: "Ooohhhh I guess I DID receive that..."
But even after telling them to look, these ones still swear it was not received.

I was searching some more and finally found the claim process. The IRS says to call them or submit form 3911 to initiate a "payment trace."

Before you do all that, pull up the Kiplinger EIP 3 calculator (simple internet search), and do the math to see if they should have gotten one based on their 2020 return, taking into consideration the 2019 return if 2020 was filed after the EIP 3's started going out.

Keep in mind EIP 3 included a second "true up" payment if the 2020 return was filed later in the year and got the taxpayer a better result than the 2019 return.

So far every client that said they didn't get it got it. I had one client claim she didn't take a $14,000 distribution but she eventually found it. It's obvious that too many people are too stupid to balance their checking account.

So far every client that said they didn't get it got it. I had one client claim she didn't take a $14,000 distribution but she eventually found it. It's obvious that too many people are too stupid to balance their checking account.

It amazes me how a solidly middle class client doesn't notice an extra $2,000-4,000 deposit in their checking account. That happened more than once this busy season.

I came to the conclusion that some individuals just base their spending on whatever the current balance of the account is and don't look into where the money came from or where it goes to.

We have "Tax Help Software" and 8821's on file with clients so I can see the IRS database and it shows that they sent them a $2,800 EIP3 check. It wasn't a true-up or anything. The client swears they didn't get it. I guess I'll give them the 3911 which makes them sign and swear under penalty of perjury that they are telling the truth. Maybe they'll look a little harder then.

As others have said, it is amazing how people don't notice this money. Our organizer asked about the EIP and ACTC and half the people that said they didn't get it actually got it. With the THS software it's really nice cause I can just look what the IRS says and just ignore what the TP writes in the organizer for those. Saves lots of letters.

Working with a similar situation, except the taxpayer is deceased. They were eligible based on 2019 and 2020, but PR could find no deposit to the bank accounts and there was no 1444C notice received.

We have requested an account transcript, which should be here in the next 10 days. If that shows the payment, I guess we follow with a 3911 accompanied by the letters of administration appointing the PR. Be interesting to see how long that takes to get processed.

It is theoretically possible they got a debit card, and if one was issued then the IRS considered the EIP paid even if the client never activated it.

It is far, far more likely that they got it and can't find it.

Yeah, I think the idea of using debit cards for the EIP was incredibly stupid. At least with a check it was either cashed or it wasn't. And direct deposits can also be traced. But those debit cards?????? Crikey!

To piggy back Post #6. I had a client that was due a refund of around $8.2k on her 2021 1040. Filed in early March, per the "Wheres my refund" site it was direct deposited mid April. Earlier this month she reaches out to say "I never received the refund". I told her what the site said and to check her records. A few hours later, "Oh I found it, thank you". Mind you she makes good money, works in financial services, so around numbers all day, etc. I thought to myself "How the heck do you miss $8k coming into your account and not seeing where it is from?" Guess she's not the only one.