Aiexpress – Millions of eligible New York taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns may soon receive a stimulus check from the Internal Revenue Service (IRS). The IRS has announced that it will automatically distribute payments to those who missed out on the credit, which was intended for individuals who did not receive one or more Economic Impact Payments (stimulus payments).
IRS Commissioner Danny Werfel revealed last month that after reviewing internal data, the agency discovered that approximately one million taxpayers qualified for the credit but did not claim it. To simplify the process and ensure the payments reach those entitled, the IRS will distribute the funds automatically, avoiding the need for individuals to file amended tax returns.
The Recovery Rebate Credit is a refundable credit for individuals who did not receive full stimulus payments. If you filed a 2021 tax return and either left the Recovery Rebate Credit section blank or entered $0 despite being eligible, you may soon receive a stimulus check. Nationwide, the IRS is distributing $2.4 billion, with eligible recipients set to receive around $1,400 in payments.
Recipients can expect the payments to arrive by late January 2025, either as a physical check mailed to the address on file or via direct deposit to the bank account listed on their 2023 tax return. The IRS has already begun sending out the checks, and those who qualify will also receive a separate letter notifying them of the payment.
Importantly, taxpayers still have time to claim the credit. Those who did not initially apply for the Recovery Rebate Credit on their 2021 returns can file by April 15, 2025, to remain eligible for the payment. The IRS urges all potential recipients to watch for the upcoming stimulus check distribution.
Tracking Your Past Tax Returns
The IRS offers several tools to help taxpayers track their past returns and refund status. Through the “Where’s My Refund” feature, you can check your refund status and view records of your federal returns from the previous two years. To access this information, you’ll need to log into your IRS online account. Additionally, the IRS2Go mobile app allows users to track the progress of their tax return, check if their return has been accepted, and view the status of refunds. To log in, you’ll need your Social Security number, filing status, and expected refund amount.
IRS Faces Budget Cuts Amid Political Tensions
The IRS is also bracing for potential cuts in funding, particularly if Donald Trump returns to office. Following a significant loss of $20 billion in funding due to a government shutdown compromise, more budget reductions are expected under the new Congress. The ongoing underfunding of the IRS has contributed to a massive unpaid tax bill, with nearly half a trillion dollars in taxes going unpaid each year, mainly from businesses that evade taxes. This trend of underfunding could worsen tax evasion and further strain the economy.
Both major political parties are critical of the current state of the IRS, with Democrats arguing that insufficient funding undermines tax fairness and revenue collection, while Republicans contend that excessive government spending hampers efficiency. The IRS’s limited resources could exacerbate the challenges of enforcing tax obligations, particularly among self-employed individuals and large businesses that exploit tax loopholes.
Leave a Reply