The Treasury Department reports that about 645,000 Americans were still waiting for their third stimulus cheque as of last October.
As of the middle of September, about 645,000 Americans eligible for the third wave of stimulus checks had not received their payouts, according to a Treasury Department study released on Thursday.
As part of the American Recovery and Reinvestment Act, the federal government was given the authority to provide up to $1,400 to any individual who qualified. Covid-19 was the third and final phase of federal stimulus monies approved by Congress.
Households will be able to claim the Recovery Rebate Credit on their 2021 tax returns with the money they received as an advance payment.
According to a study published by the Treasury Inspector General for Tax Administration, a monitor situated within the Treasury Department, the IRS has correctly issued payments to nearly 167 million persons as of Sept. 16, 2021 – about 99.5 percent of the amount.
However, according to the study, the Treasury had identified 644,705 people who had not received a payment during that timeframe. $1.6 billion was missing from their bank accounts.
294,000 extra stimulus payments from the federal government were either delayed or not accessible, according to a new report from the Office of Management and Budget (OMB).
It’s unknown how many customers have received a payout since the middle of September. A spokeswoman for the IRS was unable to elaborate on the report’s contents before the time of publication. According to the data in the report, many of them have received their money, or the IRS is reviewing their payments.
In addition, the research found that more than 1.2 million total payments ($1.9 billion) were sent to people who probably shouldn’t have received the funds. Ineligible dependents, non-U.S. residents, and payments made to households that changed their tax status were among the examples of ineligible payments.
Because some individuals are still waiting for their 2017 tax returns, the IRS is currently overburdened.
IRS Commissioner Kenneth Corbin responded in a statement attached to the Treasury report that “delivering these payments was no small undertaking,” according to the report.
IRS workers collaborated to speed up payments each of the three times Congress passed stimulus legislation, allowing checks to be sent out the following day to those in need across America by the third round,” he continued.
Lack of funds
As many as a thirds of Americans with qualified dependents were not eligible for stimulus assistance. The IRS implemented a new tax break that would have made some jobless benefit applicants eligible for a payout, according to the report. For them to be eligible for a stimulus payment, their income had to fall below a certain threshold.
Many of these people, though, have undoubtedly already received their stimulus cash by now.
Some 420,000 persons had not received a $1,400 payout for a qualifying dependent as of April 1, 2021, because of a technical issue that has now been corrected.
According to a September report, 99.5 percent of those affected by the error were “considered” for reimbursement as of April 22. When we reached out to the agency, no one could give us any more information about the status of those payments.
According to the study, the Treasury watchdog also advised that the IRS send out unemployment compensation to those who qualify. However, IRS management disagreed with this recommendation.
On their 2021 tax returns, these taxpayers must claim the Recovery Rebate Credit. This year’s tax season closes on April 18 for the vast majority of taxpayers.