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the Internal Revenue Service (IRS) It announced plans to issue automatic payments to eligible taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns.
IRS officials announced the move on December 20, and said the payments would be made automatically before the end of December. This comes after an analysis by the agency which found approx 1 million taxpayers They did not claim the pandemic-related credit on their 2021 return when they were eligible for it.
“The IRS continues to work hard to make improvements and assist taxpayers,” IRS Commissioner Danny Werfel said in a statement. “These payments are an example of our commitment to going the extra mile for taxpayers.”
“Looking at our internal data, we realized that 1 million taxpayers neglected to claim this complex credit when they were actually eligible,” Werfel said. “To reduce hassle and get this money to eligible taxpayers, we are making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive them.”
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The IRS is sending Refund Credit payments to eligible taxpayers this month. ((Photo by Spencer Platt/Getty Images)/Getty Images)
Most taxpayers who were eligible for the Recovery Recovery Credit or for one or more stimulus payments (EIP), also known as stimulus payments, have already received those credits and payments. The credit and stimulus payments were created in response to Covid-19 pandemic.
The special payments announced by the IRS are for eligible taxpayers who filed a 2021 tax return with the data field for Refund credit discount It was left blank or filled in at $0 when the taxpayer was, in fact, eligible for the credit.
Taxpayers who did not claim the credit, or part of it, on their 2021 tax return are expected to receive payment from the IRS by late January 2025. Payment will be sent to the bank account listed on the taxpayer’s 2023 tax return. Or to the filing address Their own.
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Internal Revenue Service Commissioner Daniel Wuerfel said the agency found that about 1 million taxpayers eligible for the deduction did not claim it on their 2021 tax returns. ((Tom Williams/CQ-Roll Call, Inc via Getty Images) / Getty Images)
The Rebate Credit amounts that are set to be paid vary based on several factors, although the maximum payment is $1,400 per individual. The IRS estimates the total amount to… Payments to be distributed About $2.4 billion.
The IRS will include a letter to taxpayers receiving the 2021 Refund Refund Credit payment. If the taxpayer has closed the bank account associated with their 2023 tax return since filing, the taxpayer will not need to take any action as the bank will return the payment to the IRS, which You will reissue the refund to the taxpayer’s address of record.
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There is also a deadline looming in the first half of 2025 for taxpayers who have not filed their 2021 tax returns, as they must file a return by April 15, 2025, in order to receive the Rebate Rebate Credit for which they are eligible. .
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