The American Rescue Plan has been a boost for many Americans, especially low-earners during the pandemic. Though a confusing math error notice, this letter has left many Americans perplexed. The letter has gone out to millions of Americans who claimed their pandemic stimulus check payment as a tax credit on their 2020 tax return.
The letter was mailed between the first day of this year and the middle of August. It informed recipients that they will have to refund some of their stimulus check. It also said their refunds had been reduced as a result of an overpayment.
And since the first letter was marked as a ‘final notice,’ it left many people anxious and confused. Many taxpayers dismissed the request for a refund of stimulus money as either a hoax or a fraud-mail. The letter was not decipherable and even failed to mention the legal rights of the taxpayers.
Recipients Thought That The Stimulus Check Refund Notice Was A Scam
Some recipients even took the notice to be a hoax or scam. There is every probability that the letter was mistakenly sent by the IRS. The total number of error notices sent this year is a staggering 11 million. It is a drastic rise from the 2 million notices that were sent in 2019.
Just receiving a letter from the IRS about your stimulus check doesn’t necessarily indicate that the letter is correct.
The math error notices are more than mere arithmetic mistakes. The notice is sent by the IRS due to several issues they detect during processing if it requires adjustment.
These adjustments can be made under Section 6213 of the Internal Revenue Code. The agency has been correcting returns far more than other years. these corrections are under the Math Error Authority (part II).
In simple terms, people who received the credit despite their income being above $75,000 as individuals ($150,000 if married) owe money to the IRS.