The Internal Revenue Service (IRS) this month will begin to distribute approximately $2.4 billion in unclaimed stimulus check funds to about 1 million taxpayers.
Those who will receive the money did not claim a credit they were eligible for in 2021.
The special payments, which will be up to $1,400 per individual, will be automatically deposited into the bank accounts or mailed as paper checks to eligible taxpayers in the coming weeks, according to the IRS.
No action is required by taxpayers to receive the funds.
IRS Commissioner Danny Werfel explained that the payments are being issued automatically.
“We realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible,” Werfel said in a statement. “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.”
The funds come from the three rounds of Economic Impact Payments issued during the COVID-19 pandemic, with the last distributed in 2021.
The IRS identified that over 1 million Americans did not claim their entitled Recovery Rebate Credit when filing their 2021 returns.
To be eligible for this round of payments, taxpayers must have either reported $0 for the Recovery Rebate Credit on their 2021 federal tax return or left the line item blank. Payments will be issued using the bank account details from the taxpayer’s 2023 tax return. If an account has been closed, the bank will return the payment to the IRS, which will then mail a check to the taxpayer’s address on file.
The IRS advises that individuals who did not file a 2021 tax return but believe they are eligible for the credit must file their 2021 returns by April 15 to claim their Recovery Rebate Credit.
For further details, taxpayers can visit the IRS website or contact their tax advisor.
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