IRS Announces Automatic $1,400 Stimulus Check

The Internal Revenue Service (IRS) is set to distribute up to $1,400 in unclaimed COVID stimulus payments to approximately one million American taxpayers.

At a Glance

  • IRS to send up to $1,400 to eligible taxpayers who missed claiming the Recovery Rebate Credit
  • Approximately one million Americans will receive payments automatically
  • Total distribution amounts to about $2.4 billion
  • Payments will be sent via direct deposit or check by late January
  • Eligible recipients will be notified by letter

Unclaimed Stimulus Payments

The IRS has announced a significant initiative to address unclaimed COVID-19 stimulus payments. The federal agency will automatically distribute up to $1,400 to approximately one million American taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns. This move aims to rectify oversights in the distribution of Economic Impact Payments, commonly known as stimulus checks, which were part of the government’s response to the economic challenges posed by the pandemic.

The Recovery Rebate Credit is a refundable credit designed for individuals who did not receive their full Economic Impact Payments. IRS Commissioner Danny Werfel explained the reasoning behind this automatic distribution:

“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said.

Eligibility and Distribution

Eligible recipients for these payments are taxpayers who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or entered $0. The IRS has streamlined the process to minimize complications for taxpayers. Werfel stated:

“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,” Werfel said.

The payments will vary based on individual circumstances, with a maximum of $1,400 per person. The total distribution is expected to reach approximately $2.4 billion. Eligible taxpayers will receive notifications via letters, and payments will be sent either through direct deposit or by check by the end of January.

So if you missed it the first time, you won’t miss it this time. It’s only fair, right?