Coronavirus stimulus check: Why keeping IRS letter is very important

Updated on

The IRS, so far, has sent out about 163 million stimulus payments under the American Rescue Plan Act. Now, the agency has also started sending the letter, signed by President Joe Biden, to the beneficiaries confirming their payment. It is very important that you keep this IRS letter, in case you haven’t yet received the coronavirus stimulus check, or you believe the amount you got is not correct.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q1 2021 hedge fund letters, conferences and more

Coronavirus stimulus check: why is IRS letter important?

The letter that the IRS is sending is called Notice 1444-C, and it is signed by Biden. In the previous two rounds, the letters were signed by then President Donald Trump, and were called Notice 1444-A and Notice 1444-B.

These letters inform about the amount that the IRS sent to you and the mode of payment – by mail or direct deposit. Moreover, the letter also advises you to check the Get My Payment tool or contact the IRS in case you haven’t yet got the payment.

“My fellow American, On March 11, 2021, I signed into law the American Rescue Plan, a law that will help vaccinate America and deliver immediate economic relief to hundreds of millions of Americans, including you," the letter also says. The letter is in both English and Spanish.

As said above, you need to keep this letter safe if you haven’t got the payment, or you believe the amount you got is less than what you qualify for. There are many reasons why your coronavirus stimulus check amount could be less, including the IRS didn’t count a new dependent, or your check amount was based on your 2019 return and your income dropped in 2020.

If such is the case, then the IRS letter would be important to use in claiming your missing money. Even those who got the stimulus check of the right amount, the IRS asks them to hold on to the letter for their 2021 tax records.

What if you didn’t get or misplaced the letter?

If you haven’t got the IRS letter or you somehow misplaced it, you shouldn’t worry. You can access the needed information from your federal tax account using the IRS website. In case you don’t have an account with the IRS, you can easily create one by going to the IRS account page.

To set up the account, you will need your tax and financial information, an email address and a mobile phone number. The whole registration process could take about 15 minutes to complete. In the case of married couples filing jointly, each spouse will have to log in to their own account.

If you moved to a new address since the last tax season, then it is very likely that the letter could be delivered to your last known address. To avoid such a situation, you should update your address with the IRS, as well as with USPS (if you haven't done so already).