IRS Announces Special Payments for 2021 Recovery Rebate Credit

Sai CPA Services is pleased to share the latest IRS Information.

The IRS has announced that it will issue special payments to approximately 1 million taxpayers who did not claim the 2021 Recovery Rebate Credit on their tax returns. These payments are part of the IRS's ongoing efforts to assist taxpayers and ensure they receive the benefits they are entitled to.

Key Points:

Automatic Payments: Eligible taxpayers will receive payments automatically, without needing to take any action. The payments will be sent out in December and should arrive by late January 2025.

Eligibility: The payments are for taxpayers who filed a 2021 tax return but did not claim the Recovery Rebate Credit, either by leaving the data field blank or entering $0 when they were actually eligible.

Payment Amount: The maximum payment is $1,400 per individual. The total estimated amount of payments is about $2.4 billion.

Delivery Method: Payments will be direct deposited into the bank account listed on the taxpayer's 2023 tax return or sent by paper check to the address on record. Eligible taxpayers will also receive a separate letter notifying them of the payment.

No Action Required: Taxpayers do not need to file an amended return to receive the payment. The IRS will automatically issue the payments based on their records.

Deadline for Non-Filers: Taxpayers who have not yet filed their 2021 tax returns have until April 15, 2025, to claim the Recovery Rebate Credit and any other refunds they might be owed.

Encouragement for Non-Filers: The IRS encourages eligible taxpayers to take advantage of this opportunity to receive the payments they are entitled to.

For more Information and Guidance, please contact Sai CPA Services.