The IRS is taking proactive measures to ensure that eligible taxpayers who missed out on the Recovery Rebate Credit during the 2021 tax season receive their stimulus checks. In an announcement, the IRS stated that these payments, which are designed for individuals who did not receive one or more Economic Impact Payments, will be sent automatically without the need for any action from the taxpayers.
IRS Commissioner Danny Werfel emphasized that this initiative aims to reduce complications and facilitate access to the funds. “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” he remarked. By automating these payments, eligible taxpayers can avoid the lengthy process associated with filing an amended return.
Eligible recipients can expect to receive their payments by the end of January, with the IRS noting that these funds will be distributed either via direct deposit or paper checks. Taxpayers can verify their eligibility by checking their 2021 tax returns to see if they neglected to claim the Recovery Rebate Credit or reported it as $0. Moreover, those who did not file their 2021 taxes can still qualify for this payment by submitting a return and claiming the credit by April 15, 2025.
The total estimated disbursement across the nation is approximately $2.4 billion, with individual payments potentially reaching a maximum of $1,400 per eligible taxpayer.
As many are still navigating financial challenges brought on by the pandemic, this move by the IRS is seen as a significant step towards ensuring economic relief reaches those in need.
In summary, the IRS is distributing stimulus checks to eligible taxpayers who missed the Recovery Rebate Credit on their 2021 returns without requiring any action on their part. This initiative reflects a broader commitment to make financial assistance more accessible and to alleviate challenges faced by many Americans during this uncertain economic climate.