During the COVID-19 pandemic, millions of Americans received financial support from the government. These payments, called Economic Impact Payments (EIP) or stimulus checks, were meant to help people during tough times.
Now, the IRS (Internal Revenue Service) has announced that nearly 1 million taxpayers will receive a final payment of $1,400. Here’s what you need to know.
Why Are These Payments Being Sent?
The IRS conducted a review and found that some eligible taxpayers missed out on earlier payments from the 2021 Recovery Rebate Credit. To address this, the IRS is sending out these additional payments as part of their efforts to assist taxpayers who were overlooked during earlier rounds.
How Much Money Was Distributed During the Pandemic?
During the pandemic, the U.S. government issued three rounds of stimulus checks. These payments totaled $931 billion, with individual payouts adding up to about $4,500 per person. The funding came from several programs, including the CARES Act of 2020, which alone provided $1.8 trillion to fight the healthcare crisis and stabilize the economy.
When Will People Receive These Payments?
If you’re eligible, you don’t need to take any action. The IRS will send the money either by direct deposit or by check. Payments are expected to arrive by late January.
Efforts to Combat Fraud
Unfortunately, not all pandemic relief money went to the right people. According to the Covid-19 Fraud Enforcement Task Force, over $2 billion in fraudulent claims were discovered. Authorities have charged more than 3,500 individuals and recovered $1.4 billion in stolen funds.
Attorney General Merrick Garland emphasized that investigations are ongoing to recover more stolen money and hold fraudsters accountable. Officials are even pushing for more time to catch those who committed fraud.
Government’s Commitment to Helping Taxpayers
The IRS Commissioner, Danny Werfel, highlighted that these payments are part of their commitment to assisting taxpayers. The agency is determined to improve its processes and ensure that no eligible person is left behind.
FAQs
1. Who is eligible for these payments?
Anyone who missed their earlier stimulus checks but qualifies under the 2021 Recovery Rebate Credit will receive this payment.
2. Do I need to apply for the $1,400 payment?
No, the IRS will send the payment automatically if you are eligible.
3. How will I get the money?
The payment will come as a direct deposit or a mailed check, depending on how you usually receive tax refunds.
4. What is the total amount being sent in this round?
The total payments amount to $2.4 billion across nearly one million taxpayers.
5. What should I do if I suspect fraud?
Report any suspicious activity related to pandemic relief to the IRS or the Department of Justice.
