The Internal Revenue Service (IRS) has announced that around $2.4 billion worth of automatic payments will be sent out later in December to taxpayers who were eligible for a pandemic-era tax break but didn’t claim the COVID cash.
The move was announced by the IRS in a Dec. 20 press release after internal data revealed that approximately 1 million eligible taxpayers overlooked what’s known as the recovery rebate credit and didn’t claim it on their 2021 tax returns.
The recovery rebate credit is a refundable credit for taxpayers who did not receive one or more Economic Impact Payments, also known as stimulus payments or stimulus checks. It can reduce the amount of taxes owed, increase a tax refund, or result in a direct payment from the IRS to eligible taxpayers….