The Internal Revenue Service (IRS) has admitted to sending out these letters to more than 109,000 Americans.
The IRS has said that the letter that was sent out to thousands of Americans was a mistake, according to a clarification update on the Q&A section of its website. The letters that were sent out stated that either part or all of their stimulus check would be used to cover 2007 taxes. Instead, the letters were supposed to tell Americans that the IRS hasn't yet processed their 2019 tax return, which meant that the IRS couldn't send out their first COVID-19 stimulus check.
Here's what the IRS said, "This notice is not accurate for anyone who received it...We apologize for the confusion this may have caused." Additionally,the National Taxpayer Advocate blog post states, "The CP21C letter debacle presents yet another issue related to the IRS's administration of the two EIPs... I recognize the IRS faces many challenges in administering the two EIP programs. At the same time, I recognize that many taxpayers are facing even greater challenges as the pandemic continues to adversely affect us all".
It should also be noted that people who received these letters are still eligible to receive their stimulus payment if they meet the criteria. However, these people would need to claim the recovery rebate credit on their 2020 tax return and wait for a refund. For more information on this story, visit this link here.
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