The Internal Revenue Service (IRS) is set to distribute stimulus checks to eligible taxpayers who neglected to claim the Recovery Rebate Credit on their 2021 tax returns. This initiative is aimed at providing relief to taxpayers who may have overlooked this opportunity.
IRS Commissioner Danny Werfel stated, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.” To simplify the process, the IRS will automatically send these payments to eligible individuals without requiring them to file an amended return.
Eligible taxpayers can expect their payments by the end of January, as the IRS began sending these checks in December. Payments may be delivered through direct deposit or paper checks, and recipients should receive a notification letter from the IRS to inform them about their stimulus payment.
Those who meet the eligibility criteria for the Recovery Rebate Credit, which is designed for individuals not receiving one or more Economic Impact Payments (EIP), could receive up to $1,400. Overall, the IRS anticipates a total disbursement of approximately $2.4 billion for this program.
It is important to note that individuals who did not file their 2021 tax return can still qualify for the stimulus check by submitting their return and claiming the Recovery Rebate Credit by April 15, 2025. This is a crucial opportunity for those who might have minimal or no income.
This proactive measure by the IRS aims to ensure that eligible taxpayers receive their rightful funds, reducing any potential financial strain they may be facing. By streamlining the process, the agency is demonstrating its commitment to supporting American taxpayers, making it easier for them to access their benefits during these challenging times.