Over $1B in virus stimulus cheques given to the dead

WASHINGTON — The federal government’s internal watchdog said Thursday that the IRS sent stimulus cheques to more than 1 million dead people — worth more than $1 billion (U.S.) — under the coronavirus relief package approved earlier this year.

In the first of a series of reports on the government’s coronavirus response, the Government Accountability Office also warned that the popular Paycheck Protection Program has had limited safeguards and insufficient guidance and oversight planning, increasing the risk that borrowers may misuse or improperly receive loans.

“There is a significant risk that some fraudulent or inflated applications were approved,” the report states.

The report noted that as of April 30, nearly 1.1 million dead people received a stimulus cheque, totalling $1.4 billion, and urged the IRS to determine the best way to recoup the money. To keep it from happening again if future stimulus cheques are approved, the GAO recommended that Congress pass legislation giving the Treasury Department access to Social Security Administration death records, and requiring their use to determine if someone is eligible.

Earlier this year, the administration rushed to process millions of small business loans as the economy shuttered in response to the COVID-19 pandemic.

To date, it has made 4.7 million loans to struggling small businesses worth more than $516 billion.