IRS sends $2.4 billion to taxpayers who missed stimulus checks
- The IRS is sending approximately $2.4 billion to about one million taxpayers who overlooked the Recovery Rebate Credit.
- Payments will reach eligible individuals by direct deposit or check by late January 2025, with no action needed from recipients.
- This move showcases the IRS's commitment to assisting taxpayers during the complex process of tax filing.
In the United States, the Internal Revenue Service (IRS) has announced that it will distribute approximately $2.4 billion in Recovery Rebate Credits to around one million taxpayers. This initiative is specifically aimed at those who failed to claim these credits on their 2021 tax returns, despite being eligible. Recovery Rebate Credits are a form of financial compensation for individuals who did not receive full Economic Impact Payments during the COVID-19 pandemic, originally delivered as stimulus payments. The IRS detected a significant number of eligible taxpayers who did not complete the 'Recovery Rebate Credit' section of their returns, often resulting in them missing out on potential refunds. The payments, which can reach up to $1,400 per individual, will be sent automatically, eliminating the need for taxpayers to file amended tax returns to claim the missed credits. This decision serves to simplify the process for taxpayers who may have been overwhelmed by the complexity of the tax system. IRS Commissioner Danny Werfel emphasized the agency's commitment to helping taxpayers, acknowledging that many who missed the credit likely did so because of complications in understanding the tax forms. Throughout December 2024 and into late January 2025, eligible individuals will receive direct deposits or paper checks, based on their tax filing information. Additionally, the IRS will send notification letters to inform recipients of their upcoming payments. Taxpayers who may not have filed their 2021 taxes also have an opportunity to claim these credits if they submit their returns before the extended deadline of April 15, 2025. This action highlights the IRS's ongoing efforts to ensure that eligible Americans receive the financial support they are entitled to, particularly following a challenging economic period exacerbated by the pandemic. The significant sum allocated for these payments raises discussions about proper fiscal management and the government's responsibility to its citizens. While the IRS has acted to return funds to eligible taxpayers, the broader implications of such disbursements amidst national economic pressures remain a topic of debate.