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IRS mistakenly sends stimulus checks to foreign workers


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IRS mistakenly sends stimulus checks to foreign workers

 

IRS mistakenly sends stimulus checks to foreign workers

With no clear guidance on how to return it, foreign workers are holding onto the money or racing to spend it before the Internal Revenue Service realizes the mistake.

 

Economic stimulus checks printing

 

 

Thousands of foreign workers, many living overseas, are receiving stimulus checks designated for U.S. residents due to an unforeseen glitch that funneled taxpayer dollars to other countries, according to tax consultants and the recipients themselves.

College-age workers who spent time in the U.S. in the last two years — some of whom returned home long before the coronavirus pandemic — have been surprised to find $1,200 checks deposited into their bank accounts. And with no clear guidance on how to return it, they’re holding onto the money or racing to spend it before the Internal Revenue Service realizes the mistake.

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A New York man was arrested Tuesday for stealing more than $12,000 worth of coronavirus stimulus checks from mailboxes, federal prosecutors said.

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Feng Chen, 31, was caught going through mail at a closed medical office and then later, when he spotted police, "tossed" the mail on the sidewalk,  prosecutors said in the complaint filed Wednesday in Brooklyn federal court.

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President Donald J. Trump's name printed on a stimulus check issued by the IRS on April 23. A New York man was arrested Tuesday for allegedly stealing more than $12,000 worth of coronavirus stimulus checks from mailboxes, federal prosecutors said. (AP Photo/Eric Gay, File)

President Donald J. Trump's name printed on a stimulus check issued by the IRS on April 23. A New York man was arrested Tuesday for allegedly stealing more than $12,000 worth of coronavirus stimulus checks from mailboxes, federal prosecutors said. (AP Photo/Eric Gay, File)

Officers from the New York Police Department observed a "bulge" in Chen's jacket and found nine stimulus checks, totaling more than $12,000, the complaint said. They allegedly also found credit cards and other envelopes that were opened.

“The COVID-19 crisis has placed tremendous stress on underserved communities across this country," said Philip R. Bartlett, Inspector-in-Charge of the United States Postal Inspection Service. "When Mr. Chen stole these checks, he robbed recipients of these much-needed funds."

Police learned that Chen also had an open bench warrant in New York County for a separate criminal case involving identity theft, according to the complaint.

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Chen stumbled over his story during questioning, indicating at first that he was delivering food to one of the buildings to the claim that he lived there, the complaint alleged.

Chen made his initial court appearance Wednesday by videoconference before United States Chief Magistrate Judge Cheryl L. Pollak.

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He was charged with theft of mail and faces up to five years in prison if convicted.

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