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Monday, March 20, 2023

Stimulus Check Update: IRS Demanding Stimulus Repayment

The previous month saw the IRS processing thousands of letters to citizens demanding the repayment of stimulus check payments. The sum for these payments was $600, $1,200, and even went up to $2,000. The letters were initiated from June and July as the agency started the tedious task of processing millions of backlogged returns in taxes.

Ever since the original reports came in, several others have also come forward and shared their experiences with the IRS, which simply confirms that they have received letters that seek repayment. 

Stimulus Check Repayment Letters

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One of the residents of New York, Melanie Dakota, mentioned that initially, she had thought this was an error. Since they were already well- under the income threshold necessary for past stimulus check payments, there was no reason why they owed any money to the IRS. The first letter that the family received implied that she and her husband would have to repay around $1,800- when they make less than $70,000 combined. But, they didn’t receive any letter after the stimulus payment of $1,400 came through. 

Citizens need to realize that such letters are usually sent out by the agency when they believe that someone has been sent double stimulus check payments. Multiple representatives from the agency mentioned to Dakota that there were records in the IRS that she had received two payments of $1,200 and $600.

The IRS had mentioned that they would be able to fix this matter, but it could take some time. There was also a slight issue- if no one responded to the letter, the IRS would simply take the money- and that would be the end of the matter. 

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Needless to say, this issue has left a lasting impact on Dakota and her husband. She stated that the stimulus check payments were supposed to help working people, but now the agency was taking the money from the people who needed it the most. 

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