IRS Urges Taxpayers to Claim Recovery Rebate Credit by April 15

The IRS is urging taxpayers to claim the Recovery Rebate Credit (RRC) before the April 15 deadline, highlighting that eligible individuals who missed claiming this refundable credit on their 2021 tax returns may still qualify. The RRC is intended for those who did not receive Economic Impact Payments (stimulus checks) during 2020 and 2021, with automatic payments expected to be distributed by late January 2025 for those who filed their returns but left the RRC field blank. Additionally, the IRS has identified over 1.1 million unclaimed refunds from tax year 2021, totaling more than $1 billion, and is encouraging early filing to avoid losing potential refunds. Taxpayers are reminded that they typically have three years to file for refunds, or the funds revert to the U.S. Treasury if not claimed. In a broader context, the IRS also allows taxpayers unable to meet tax deadlines to apply for extensions, although interest on unpaid taxes will accrue. These initiatives aim to ensure that eligible Americans receive the financial support intended for them during the pandemic recovery.