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Federal judge: IRS can't keep coronavirus money from inmates

IRS working to extend stimulus payments to underserved communities
Posted at 11:54 AM, Oct 06, 2020
and last updated 2020-10-06 13:54:21-04

BOISE, Idaho — A federal judge says the IRS can’t keep withholding coronavirus relief payments from incarcerated people, potentially clearing the way for at least 80,000 checks totaling more than $100 million to be sent to people behind bars in the United States.

The ruling gives the IRS until Oct. 24 to reconsider the payments for those who were denied or had their money intercepted solely because of their incarceration. But for incarcerated people who didn’t file a tax return in 2018 or 2019, another deadline is looming — they have until Oct. 15 to apply for the checks.

The IRS and Treasury Department have not yet decided whether to pursue an appeal.