A million taxpayers are receiving up to $1,400 from the IRS. Who are they and why now?

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Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. stimulus / ˈstɪm yə ləs / (n.) – something that causes an activity to happen, grow and develop faster
    Example:

    The government provided a financial stimulus to support small businesses during the pandemic.


  2. overlook / ˌoʊ vərˈlʊk / (v.) – to fail to notice, see, or recognize something important
    Example:

    She didn’t want to overlook any details while preparing for the marketing project.


  3. file / faɪl / (v.) – to submit a legal document or official form to an authority so it can be reviewed, recorded, or approved
    Example:

    The company filed its financial report with the government before the deadline.


  4. take action / teɪk ˈæk ʃən / (idiom) – to do something
    Example:

    The city plans to take action to reduce traffic by improving public transport.


  5. eligibility / ˌel ə dʒəˈbɪl ə t̬i / (n.) – the condition or state of being able to have the qualities or requirements needed for something
    Example:

    The university announced the eligibility rules students must meet to be accepted into the scholarship program.


Article

Read the text below.

Approximately one million taxpayers are automatically receiving special payments of up to $1,400 from the Internal Revenue Service (IRS). The money is being directly deposited into eligible people’s bank accounts or sent in the mail as a paper check.


The IRS said it’s distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. People who missed one of the COVID stimulus payments or received less than the full amount were able to claim the credit. But the IRS said it discovered many eligible taxpayers hadn’t done so.


“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement.


The IRS said most taxpayers eligible for the federal stimulus payments, formally known as Economic Impact Payments, have already received them.


The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or they filled it out as $0 when they were actually eligible for the credit.


Eligible taxpayers don’t have to take any action. The payments have been going out automatically since last December and should arrive by direct deposit or check by late January 2025. They’ll be sent to the bank account listed on the taxpayer’s 2023 return or to the address the IRS has on file.


Payments vary, but the maximum amount is $1,400 per individual. The IRS has posted information online about eligibility and how the payment was calculated.


The IRS is sending separate letters to eligible taxpayers notifying them of the special payment.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Eligible taxpayers don’t have to take any action to receive special payments of up to $1,400 from the IRS. In your country, how easy or difficult is it for eligible taxpayers to get tax refunds? How often do taxpayers get refunds or special payments? Discuss.
  • If you were to receive special payments from the IRS, what would you do with the money? What would you spend it on? Discuss.

Discussion B

  • According to IRS Commissioner Werfel, “One million taxpayers overlooked claiming this complex credit.” Why do you think many taxpayers tend to overlook tax-related transactions? Discuss.
  • What do you think the government can do to make tax payments and other tax-related transactions easier for the public (ex. make payments available online, have IRS offices open on weekends)? Discuss.