The US tax authorities have revealed that they will distribute special $1,400 payments to 1 million taxpayers who missed out on the 2021 recovery rebate under the Economic Impact Payment (EIP) program. This step is considered part of the final installments of pandemic-era stimulus checks. The Internal Revenue Service (IRS) explained that this decision came after a review found many eligible taxpayers who had not received one or more of the EIP payments. The disbursements are a last effort to ensure all qualified individuals receive the assistance they were entitled to.
During the pandemic, the US government sent out three rounds of EIP payments, totaling approximately $931 billion between April 2020 and December 2021. Each payment could have amounted to around $4,500 per eligible individual. These special payments, which total an estimated $2.4 billion, are aimed at addressing the gap for the one million taxpayers who were overlooked. The IRS’s move to send these payments highlights its ongoing efforts to make sure all individuals get their deserved benefits.
IRS to Distribute $1,400 Payments to 1 Million Taxpayers Missed by 2021 Stimulus
A large portion of the federal funds for pandemic relief was allocated through the CARES Act of 2020, which directed $1.8 trillion to help address both the public health crisis and the resulting economic fallout. Additional funds flowed through other government programs and the Treasury Department’s initiatives. These stimulus payments were part of a much larger effort that aimed to alleviate the widespread economic disruptions caused by COVID-19.
Eligible taxpayers do not need to take any action to receive the special $1,400 payments, as the IRS will automatically process and send out the funds either through direct deposit or by check. These payments are expected to be delivered by late January. IRS Commissioner Danny Werfel reaffirmed the agency’s commitment to improving taxpayer services and ensuring that all eligible recipients receive the funds they are due.
While this final round of payments is underway, the US government is also working to investigate and recover funds that were fraudulently obtained through COVID-19 relief programs. A report from the Department of Justice’s COVID-19 Fraud Enforcement Task Force revealed that criminal charges had been brought against over 3,500 individuals for fraudulent claims, amounting to losses of more than $2 billion. Attorney General Merrick Garland emphasized the ongoing efforts to track down fraudsters, with additional efforts underway to extend the statute of limitations and recover stolen relief funds.
