If you have received a letter from the IRS, do not panic! The IRS has begun sending out letters to potentially eligible families who did not claim Economic Impact stimulus payments, the Earned Income Tax Credit, the Child Tax Credit, and/or the Recovery Rebate Credit and did not file a 2021 federal tax return. If you filed a 2021 tax return, you will not receive this letter from the IRS and this will not affect you.
These benefits have been expanded under last year’s American Rescue Plan Act and other recent legislation. The IRS is trying to encourage families that did not file a 2021 tax return yet to review these benefits. Even if you are not required to file a tax return, it may be beneficial to file a tax return for 2021 in order to claim these credits. Individuals have until 2025 to retroactively file a full tax return to claim the funds.
Contact your accountant for more information on the benefits of claiming these credits.