IRS Announces Automatic Stimulus Payments for Overlooked Taxpayers

The IRS will send special payments of up to USD 1,400 to one million taxpayers who missed claiming a Recovery Rebate Credit. These payments aim to address the oversight of eligible taxpayers who did not receive full COVID stimulus payments. The initiative will conclude by January 2025.

In a recent move, the IRS has revealed plans to issue automatic payments to about one million taxpayers who missed out on a crucial Recovery Rebate Credit. The payments, aimed at those who failed to claim this credit on their 2021 tax returns, will amount to as much as USD 1,400 per individual.

The IRS's initiative follows the discovery that many eligible individuals had not claimed the credit, which was available to those who did not receive the full COVID stimulus payments. IRS Commissioner Danny Werfel highlighted internal data that showed the oversight among taxpayers, prompting the agency to act.

Eligible taxpayers will receive the payments automatically through direct deposit or paper checks by January 2025. The IRS advises individuals who haven't filed their 2021 tax returns yet to do so by April 2025 to ensure they receive this benefit.

(With inputs from agencies.)