Court filings and legal news sources

IRS to Automatically Send Up to $1,400 to 1 Million Taxpayers for Unclaimed Recovery Rebate Credit

Dec 22, 2024, 09:15 PM

The Internal Revenue Service (IRS) is set to distribute approximately $2.4 billion in special payments to about 1 million taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. These payments, which will be sent out automatically in December, are intended for individuals who missed one of the COVID stimulus payments or received less than the full amount. Eligible taxpayers will receive up to $1,400 per person, with the payments arriving by direct deposit or paper check by late January 2025. The IRS has identified these taxpayers through internal data and will send separate letters to notify them of the upcoming payment. IRS Commissioner Danny Werfel stated that many eligible taxpayers overlooked claiming this credit. The payments are part of the Economic Impact Payments under the American Rescue Plan Act. Taxpayers who have not yet filed their 2021 tax returns can still claim the credit, but must do so by the April 15, 2025 deadline.