Tuesday, October 19

Why is the IRS sending letters through the mail for payments due on stimulus checks and “Refund Recovery Credit”?


The IRS explained that some tax returns do not include the correct calculation for the “Refund Recovery Credit.”

Photo: Karolina Grabowska / Pexels

The Internal Revenue Service (IRS) reported this Monday that some people will receive a letter from the agency corresponding to the stimulus checks owed from the first and second rounds in cases where the documentation submitted to claim the “Refund Recovery Credit” required a correction.

Through the referred credit, the agency this year evaluates requests for late payments or the third stimulus check for people who usually do not have to file taxes.

“Individuals who did not receive a first or second economic impact payment, or received less than the total amounts, may be eligible for the 2020 refund recovery credit. They must file a 2020 tax return to claim the refund recovery credit. 2020 refund, even if they don’t usually file a tax return, “explained the IRS.

This is the procedure used by the agency to calculate the amount and eligibility for payments for Americans who, due to lack of information, had not been able to process one or more of the stimulus checks approved in the federal Congress.

“When the IRS processes a 2020 tax return claiming a refund recovery credit, the IRS determines the eligibility and amount of the taxpayer credit based on the information in the 2020 tax return and the amounts of any first or second payment of economic impact previously issued. If a taxpayer is eligible for the 2020 refund recovery credit, it will be reduced by the amount of any first or second economic impact payment that we issue to them, ”the office explained in the press entry.

Errors in requesting the “Refund Recovery Credit”

However, there are cases of returns filed with errors in the information contained in the 1040 or 1040-SR form that the IRS had to amend to make the calculation.

If the above applies to you, the agency will send you a letter explaining the change and the reason for it.

Possible delays in the arrival of the refund

“If a correction is needed, there may be a short delay in processing the return and the IRS will send the taxpayer a letter, also known as a notice, explaining any changes made,” the entity noted on its website.

Taxpayers who receive a notice that the IRS changed their 2020 refund recovery credit amount should read the notice for the reason provided and review their 2020 tax return, refund recovery credit requirements. 2020 and the worksheet in the Form 1040 and Form 1040-SR instructions“Added the office.

Some of the reasons the IRS corrected the 2020 Refund Recovery Credit are as follows:

  • The individual was claimed as a dependent on someone else’s tax return in 2020.
  • The person did not provide a valid Social Security number for employment.
  • The qualifying child was 17 or older on January 1, 2020.
  • Mathematical errors related to the calculation of adjusted gross income and any first or second economic impact payments already received.

On IRS.gov, in the section Fixing Refund Recovery Credit Issues After 2020 Tax Return Filed, you can find information on this topic. provides additional information to explain what errors may have occurred. If you do not agree with the IRS calculation, you should review your letter and the questions and answers before contacting the IRS.


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