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From Fox Business: The Internal Revenue Service (IRS) announced plans to issue automatic payments to eligible taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 tax returns.
IRS officials announced the move on Friday and said the payments will be made automatically before the end of December. It follows an analysis by the agency that found roughly 1 million taxpayers didn’t claim the pandemic-related credit in their 2021 return when they were eligible to receive it.
“The IRS continues to work hard to make improvements and help taxpayers,” said IRS Commissioner Danny Werfel in a statement. “These payments are an example of our commitment to go the extra mile for taxpayers.”
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” Werfel said. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
CLICK HERE to access the press release posted on the IRS website on Dec. 20 for complete details.
Below are key excerpts from the press release:
The payments vary depending on several factors, but the maximum payment is $1,400 per individual. The estimated amount of payments going out will be about $2.4 billion.
The IRS also reminded taxpayers who haven’t filed 2021 tax returns they might be eligible as well, but they face an April 15, 2025, deadline to file their returns to claim the credit and any other refund they might be owed.
Most taxpayers eligible for EIPs have already received their EIP or Recovery Rebate Credit.
These December payments for the 2021 Recovery Rebate Credit are only going to taxpayers where IRS data demonstrates a taxpayer qualifies for the credit. Qualified taxpayers are those who filed a 2021 tax return, but where the data field for the Recovery Rebate Credit was left blank or was filled out as $0 when the taxpayer was actually eligible for the credit.
Taxpayers who qualify but did not claim any portion of the credit on their 2021 tax return should receive these payments by late January 2025. The payment will be sent to the bank account listed on the taxpayer’s 2023 tax return or to the address of record.
An IRS letter will be sent to the taxpayer receiving these 2021 Recovery Rebate Credit payments. If the taxpayer closed their bank account since filing their 2023 tax return, taxpayers do not need to take any action. The bank will return the payment to the IRS and the refund will be reissued to the address of record.
#IRS announces special payments going this month to 1 million #taxpayers who did not claim 2021 Recovery Rebate Credit; encourages non-filers about approaching deadline to claim creditshttps://t.co/1J4YgSPzCS
— Alloy Silverstein (@AlloyCPAs) December 26, 2024
One million taxpayers will automatically receive a payment from the IRS in the coming weeks.
The checks, which could amount to as much as $1,400, are for those who failed to claim the Recovery Rebate Credit on their 2021 tax returns. https://t.co/MZTaVJsaFv
— ABC News (@ABC) December 26, 2024
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