• The IRS is distributing approximately $2.4 billion in automatic stimulus payments to eligible taxpayers.
• Up to 1 million Americans will receive payments of up to $1,400 for not claiming their Recovery Rebate Credit.
• Payments will be sent automatically to those who filed 2021 tax returns but left the Recovery Rebate Credit blank.
• IRS Commissioner Danny Werfel emphasized the IRS's commitment to assist taxpayers in receiving their rightful payments.
• Checks are expected to arrive by late January 2025, either through direct deposit or mailed checks.

The Internal Revenue Service (IRS) is set to distribute around $2.4 billion in automatic stimulus payments to about 1 million Americans who did not claim their COVID stimulus payments during the pandemic. These payments, up to $1,400 each, target individuals who overlooked the Recovery Rebate Credit on their 2021 tax returns. According to IRS Commissioner Danny Werfel, the initiative comes after an internal review showed many eligible taxpayers failed to claim this credit, meriting the issuance of these new payments. "Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible," he noted.

Qualified taxpayers include those who filed a 2021 return but left the recovery credit field blank or entered a $0 when they were indeed eligible for the credit. The IRS is automating this process to avoid the need for eligible taxpayers to amend their tax returns. "To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic," Werfel added.

Payments will be automatically sent out in late January 2025, either through direct deposit or by paper check, based on the details IRS has on file. It's important for those who haven’t filed their 2021 returns yet to do so by the April 15, 2025 deadline to be eligible for these late stimulus payments. Those who didn’t receive these payments in previous rounds, which amounted to over $814 billion, may find the arrival of these funds timely.

Experts are hopeful that these unexpected checks will provide a welcome financial boost to those who may have faced hardship due to rising costs in recent years. The late stimulus payments may feel like a needed relief for those who have struggled since initial payments were made. As highlighted by Newsweek, many eligible individuals are likely to appreciate this assistance, even if it arrives significantly after the original economic impact payments. Given the current financial landscape, such measures from the IRS are critical in supporting affected taxpayers.

For further details on eligibility and payment specifics, the IRS has published comprehensive information online regarding the Recovery Rebate Credit.