The IRS started sending out the first stimulus checks in April. Even after six months, millions of people have still not received the stimulus checks while millions have still to claim it. The IRS is working to address the issues for both groups of people. For the same, the agency on Tuesday said it will send reminders to up to 9 million people who have yet to claim coronavirus stimulus checks.
The IRS will start sending letters to about 9 million people who normally don’t file a federal income tax return, but are eligible for the payment under the CARES Act. Those who get the letter need to register with the IRS by October 15 to claim their coronavirus stimulus checks.
When it comes to finding future business champions, Warren Buffett and Charlie Munger have really excelled over the past seven decades. Q3 2021 hedge fund letters, conferences and more One could argue that these two individuals are some of the best growth investors of all time, thanks to their ability to spot companies like Coca-Cola Read More
"We are taking this extra step to help Americans who may not know they could be eligible for this payment or don't know how to register for one," said IRS said in a statement. "People who aren't required to file a tax return can quickly register on IRS.gov and still get their money this year."
Usually, people with low income aren’t required to file an income tax return, such as those with income less than $12,200 in 2019 (or $24,400 for couples filing jointly). A person is eligible to claim coronavirus stimulus checks if he or she is a U.S. citizen, has a Social Security number and hasn’t been claimed as a dependent by someone else on their tax return.
All eligible Americans are entitled to a payment of up to $1,200 (or $2,400 for a married couple). Additionally, every qualifying dependent gets a payment of $500. The IRS informed that about 160 million stimulus payments have been sent out since it was approved by Congress in March.
Why is the IRS sending reminders?
To get the checks out quickly, the agency used the taxpayers' most recent tax returns. The IRS used the bank account information and address in the tax returns to send out direct deposits or paper checks to eligible Americans.
However, those who don’t usually file taxes were asked to use the IRS non-flier tool to input their information. Now, it appears that millions of such people haven’t yet registered with the IRS. That is why the IRS is taking the initiative to send reminders to these people.
It will start sending the letter from September 24. The letter will inform the recipients that they could be eligible for the stimulus payment, and to claim their coronavirus stimulus checks, they need to register using the Non-Filers tool.
In the last couple of months, the IRS has been working to resolve issues related to stimulus checks. Last month, the agency said it would send catch-up payments to about 50,000 people whose payment was withheld because of a spouse's unpaid child support.