Letter to J. Russell George, Department of the Treasury Inspector General for Tax Administration - Congresswoman Moore Calls for Answers About Reported Economic Impact Payment (EIP) Fraud in Nursing Home Facilities

Letter

Dear Inspector General George:

I write you in response to the troubling reports emerging about nursing homes and assisted living
facilities across the nation requiring or pressuring residents into signing over their Economic
Impact Payment (EIP) checks. According to the FTC report, these nursing homes have been
claiming that they get to intercept the payment because the person is on Medicaid. I believe that
is absolutely false and I urge you to investigate immediately, including examining the IRS effort
(in conjunction with the Centers for Medicare and Medicare Services (CMS) or other federal
agencies) to stop these interceptions and issuing recommendations to the Internal Revenue
Service (IRS) regarding actions the IRS can take to prevent nursing homes and assisted living
facilities from intercepting or otherwise coercing their patients to turn over their EIP payments to
the facilities for any reason. I also urge you to alert residents at these facilities of possible
fraudulent attempts to appropriate payments to which they are eligible.

The EIP constitute a key part of the federal government's attempt to help all individuals affected
by the unprecedented economic downturn our nation is now experiencing. For low-income
seniors or seniors on fixed incomes, these payments are important supplement that can help them through this tough economic time. In addition, Congress took explicit steps in the Coronavirus Aid, Relief, and Economic Security (CARES Act) to help ensure that these payments are received by qualifying individuals and would not be intercepted. For instance, section 2201(d) of the CARES Act prohibits the Department of Treasury from reducing or offsetting these
payments to satisfy most past due debts owed to governmental agencies. Furthermore, by
structuring the EIP as tax credits, Congress acted to ensure that the distribution of these
payments would not cause adverse impacts with respect to other Federal benefits for which the
recipients may be eligible. Under section 26 USC 6409, these payments may not affect a recipient's determination of eligibility for benefits or assistance or the amount of any such
benefits or assistance provided under any Federal program or under any State or local program
financed in whole or in part with Federal funds. These examples support the clear and manifested
intent of Congress that these payments are distributed to provide emergency relief to the eligible
individuals, themselves.

I am appalled that some may be acting to intentionally intercept or coerce their vulnerable
residents to turn over these critical payments, including using the false argument that Medicaid
somehow allows them to do so. That is why it is imperative that the IRS act to make clear that
such actions are not acceptable and should stop immediately and that you require any nursing
home receiving federal funds that have engaged in such actions to promptly return affected
individuals' EIP payments. I urge the U.S. Treasury Inspector General for Tax Administration to
exercise its oversight over fraudulent activity related to these payments to protect patients and
residents of these facilities who are properly entitled to their EIP.

I would appreciate a timely response to the following questions:

1. Are you tracking reports of nursing homes, assisted living, or other facilities caring for
residents who are on Medicaid or Medicare intercepting these payments, including using
Medicaid as a reason for taking these payments?

2. Is it your understanding that the law and IRS rules regarding these payments prohibit
such types of interceptions by these facilities?

3. What actions has the IRS taken to prevent such interceptions, if any, or to help
individuals get their money back if it has been intercepted or ceased?

4. Has the IRS provided guidance to CMS, or consulted with CMS about these reports and
about the best ways to stop these illegal EIP interceptions?

5. What actions can you take, or recommend that the IRS/Department of Treasury take, to
ensure that residents in assisted living facilities and nursing homes and their families
have accurate information regarding requests from their facility to intercept their EIP?

6. What actions will you take or recommend that the IRS take against assisted living or
nursing home facilities that have intercepted these payments and that have failed to
promptly return the payments to affected individuals?

Thank you and I look forward to your response.

Source