The Internal Revenue Service (IRS) has begun the distribution of approximately $2.4 billion in unclaimed stimulus tax credits. This disbursement will benefit around one million taxpayers who did not request the credit during the 2021 fiscal year, despite meeting the eligibility criteria.
Each beneficiary could receive up to $1,400 per person automatically, either by electronic transfer to previously registered bank accounts or by paper check sent to the declared address. According to the IRS, taxpayers will not need to complete any additional procedures to receive these funds.
Automatic distributions of the stimulus checks: How will the IRS send your money?
IRS Commissioner Danny Werfel highlighted that this procedure seeks to simplify access to tax benefits. “We identified that one million taxpayers did not take advantage of this important credit despite being eligible,” Werfel stated in a statement. “To make the process easier, we are implementing automatic payments, eliminating the need for people to file amended returns.”
These funds correspond to the three rounds of Economic Impact Payments distributed during the COVID-19 pandemic. The third round, carried out in 2021, revealed that numerous taxpayers did not claim the Recovery Refund Credit, which is why this automatic refund initiative was activated.
Eligibility criteria based on tax data
Automatic payments will be sent to taxpayers who left the Recovery Rebate Credit line empty or recorded a $0 amount on their 2021 federal returns. Deposits will be made using the bank information included in their most recent tax returns. , corresponding to the year 2023.
If the bank account provided is no longer active, the bank will return the funds to the IRS. In these cases, a paper check will be automatically generated and sent by postal mail to the last registered address, guaranteeing that beneficiaries receive their credits without additional procedures.
Requirements for those who did not declare taxes
The IRS also reported that individuals who did not file a tax return in 2021, but believe they meet the eligibility criteria, can claim the credit by filing their return before April 15. This step will allow applicants to access the funds corresponding to the Recovery Rebate Credit.
For more details about the process, the IRS recommends visiting its official website or consulting with a tax professional. This measure seeks to ensure that all eligible taxpayers receive the benefits to which they are entitled in an efficient and timely manner.
