Austrian citizens puzzled after receiving US stimulus cheques, banks say

One couple received £921 each despite not being US residents or holding American citizenship

NPR reported last month that thousands of foreigners who used to temporarily work in the US had accidentally received stimulus payouts around the world (iStock)

Hundreds of people have cashed US stimulus cheques at Austrian banks in recent months.

Some of them appeared puzzled by the unexpected payments or were ineligible for the payouts, according to bank officials and Austrian media reports.

One of the Austrians who claimed to have received such an erroneous cheque, pensioner Manfred Barnreiter told Austria's public broadcaster ORF that he at first believed his cheque to be part of a sophisticated fraud scheme.

"We quietly went to the bank … where we were told they'll see if it's real," Mr Barnreiter told ORF. "Three days later, we had the money in our bank account."

He and his wife received $1,200 (£921) each, although neither is a US resident or holds US citizenship - key eligibility requirements. Mr Barnreiter briefly worked in the United States in the 1960s and still receives a small pension from that period of employment, he said.

It is unclear how many US cheques were cashed in Austria by ineligible recipients. Similar instances have been reported in other countries.

NPR reported last month that thousands of foreigners who used to temporarily work in the United States had accidentally received stimulus cheques around the world. Speaking to NPR, government officials said at the time that improperly filed tax returns may be to blame for the accidental payments. Cashing the cheques despite not being eligible, they added, could result in a change in visa status or difficulties in reentering the United States.

The payouts probably still account for only a very small fraction of the first $2tn (£1.5bn) US stimulus package.

The cheques were the centrepiece of that relief package this year, amid the initial fallout of the coronavirus pandemic. Before their distribution by the Internal Revenue Service, the Treasury Department ordered Donald Trump's name to be printed on them.

Many recipient abroad found this flourish especially confusing.

Several Austrian banks confirmed on Wednesday that they had received queries from confused customers in recent weeks. Gerald Meissl, a senior official with Upper Austria's Sparkasse bank, said several Austrians who had recently returned from the United States after working there as au pairs had received the cheques, as well.

"People initially thought it's a treacherous form of fraud - but the cheques were real," said a spokeswoman for Austria's Oberbank.

Representatives of three local branches of banks operating in Austria said they had cashed a total of around 200 US stimulus cheques by Wednesday. The figure probably represents only a fraction of all US stimulus cheques cashed in the country in recent months.

None of the banks was able to say how many cheques were cashed by Austrians likely to not be eligible for the US government payments, versus cheques cashed by US citizens living abroad and fulfilling the criteria.

The IRS would not respond on the record to a request for comment.

Speaking to ORF, pensioner Mr Barnreiter said he is planning to spend the money in the United States once travel restrictions are eased.

But he acknowledged initial doubts about whether he made the right decision in cashing the cheques, as the United States continues to be hard-hit by the coronavirus. "Initially, I felt bad, thinking: 'Those poor Americans, maybe they need the money more urgently than we do here in Europe.'"

But in the grand scheme of things, he said, "it's peanuts".

The Washington Post