A recent survey revealed that 645,000 people missed their third stimulus checks despite being eligible for the money. This IRS letter may help you claim the missing payments.
IRS Letter 6475 Purpose
Although the third stimulus check was approved to reduce people's burdens, many of them did not get it. According to a recent survey, around 645,000 people have yet to receive their stimulus checks even though they have been eligible since September. This meant that they did not receive the necessary assistance from the government for six months.
The third stimulus check was approved under the American Rescue Plan, and the IRS began sending it to citizens as soon as it became official. The IRS could only deliver the stimulus payments to those who were deemed eligible based on data from the prior year's tax file. Even though non-filers had the option of receiving a stimulus check, many did not.
Although the overall number might be incorrect, indicating that some people did get the stimulus check, the figure is too huge to ignore. Citizens must complete their 2021 income tax return and request their Recovery Rebate Credit to collect the missed check.
The deadline for filing is April 18, and the VITA program, which assists residents with concerns relating to tax-free charges, is available to help the needy, Digital Market News reported. You must appropriately record your stimulus check payments to submit your taxes correctly and receive your tax refund on time.
According to IRS Commissioner Charles P. Retting, the IRS received considerably more than 10 million returns in 2020 that wrongly misrepresented stimulus money, causing manual scrutiny and severe refund delays. The Internal Revenue Service (IRS) has issued critical guidance on reconciling your stimulus check payments with your taxes, as per CNET.
You May Be Eligible For 'Plus Up' Stimulus Checks
In an ideal world, taxpayers might have received IRS Letter 6475, which outlined the amount of the third stimulus payment distributed between March and December of last year. In March, many people received the money in one large payment. Others may have gotten what's known as 'plus-up' payments.
Based on their 2019 tax filings, some people received a lesser sum in March or April last year. They got a 'plus up' bonus after filing a 2020 income tax return later in the year. For example, if their income fell during the recession in 2020 and they qualified for more money based on their 2020 return, they may have been eligible for further stimulus money.
Some 'plus up' payments were sent to those who had previously received money based on information from the Social Security Administration, the Railroad Retirement Board, or the Department of Veterans Affairs. If the taxpayer still has a return due after the error is remedied, the IRS will modify any refund due and send the balance as the revised amount of refund, according to Steber.
He predicted that the money would arrive either by direct deposit or paper check, as the taxpayer had requested. The IRS will also send the individual a letter outlining the change. If the taxpayer owes money, though, it becomes more problematic, according to Steber. They may be subject to penalties and interest so it's best to figure out what's owing, amend the return, and pay the IRS by April 18 deadline, according to USA Today.
Related Article : Tax Refunds Status Update: When To Expect Refunds, How to Know If You Owe the IRS Money
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