The Judge’s preliminary injunction further ordered the defendants to reconsider their prior denial of advance refund payments to any person based on incarcerated status within 30 days, whether the denial was based on a 2018 or 2019 tax return, or on claims filed through the IRS’s online “Non-Filer” portal.
Earlier, on August 1, 2020, Lieff Cabraser and the Equal Justice Society filed a groundbreaking lawsuit against the United States Department of the Treasury and Internal Revenue Service on behalf of a nationwide class of people who were incarcerated at any time from March 27, 2020 to the present—that is, people serving a sentence in state or federal prison. The lawsuit seeks to have a court order the Defendants to issue CARES Act stimulus relief to all eligible incarcerated people, or up to $1,200 per eligible person plus $500 per qualifying child.
Note: This case also benefits people who were incarcerated both before and after March 27, 2020. If they were incarcerated both prior to March 27 and at least some time afterward, then the IRS may have denied them an Economic Impact Payment based on their incarcerated status. The Court’s preliminary injunction establishes that the IRS should not have done that. If they were only incarcerated before March 27, then they were unaffected by the IRS’s policy of denying benefits to incarcerated people, and should a have received a stimulus check. If they have not, they can file the same steps below to file a claim with the IRS, if eligible.