The IRS admitted that they had mistakenly issued stimulus checks to some recipients because of a “math error.” It is now urging individuals who received the money, or their family members, to repay it.
A few months ago, thousands of foreign employees living abroad and recently dead relatives wondered why they got money in their bank accounts when stimulus payments began in mid-April. Many others thought it was most likely a mistake, but they didn’t know how to report it.
IRS Mistakenly Sent Stimulus Checks To Some People
The IRS sent roughly 9 million alerts between January 1 and July 15 this year, Taxpayer Advocate Service said, compared to more than 620,000 sent during the same period last year. The stimulus payments accounted for around 7.4 million of the total.
Independent (via Yahoo! News) said many taxpayers have been perplexed by the notifications, which have left them unsure of what they owe.
As part of the American Rescue Plan, many Americans received financial assistance in $1,400 cheques. They made the payments to anyone with an individual income of less than $75,000 or a combined income of less than $150,000 if married. Other monies were made available as well, including a $1,000 increase in the Child Tax Credit.
Those who did not get the $1,400 stimulus check may claim it as a Recovery Rebate Credit on their taxes. However, the IRS determined that some persons who claimed the credit should not have, and millions of returns were amended as a result.
If a person’s tax return was being changed, the IRS sent them a letter. Still, there were reportedly errors with some of the letters, with some being sent out without necessary numbers and others without an idea about the right to appeal. Additional notes from the agency followed, indicating that modifications might be imposed.
Unsure How To Return The Money? Here’s How
Business Insider shared some tips on what you should do if you get an incorrect paper check:
- On the back part of the check, write “void” in the endorsement area;
- Include a letter explaining why the check is being returned with the check;
- Mail the check and letter to the IRS facility that corresponds to your state. On the IRS website, you may get a list of addresses.
If you received a direct deposit or have already cashed a paper check, follow these steps:
- 1. Mail a personal check or money order to the IRS address for your state – the list may be found here.
- Make the check payable to “U.S. Treasury” and add “2020EIP” along with the recipient’s Social Security number or TIN number in the memo line.
- Include a letter explaining why the check is being returned with the check.