THE IRS have confirmed that they are investigating a stimulus check “math error” that has left millions of Americans owing money.
It comes after the Taxpayer Advocate Service confirmed that the IRS had sent roughly nine million notices from January 1 to July 15.
According to KTVU, the letters were sent out to people who claimed the recovery rebate credit on their 2020 tax returns.
It had initially allowed those who didn’t get their first or second stimulus checks to claim them on their returns and receive them as part of a tax refund.
But now, in a major U-turn, people are being to ask to check if they owe money if a ‘6470 letter’ has arrived through the post.
“The IRS is currently correcting more errors on returns and issuing more math error notices than in previous years,” the Tax Payer Advocate Service said of the error.
It is up significantly from nearly 629,000 registered during the same period in 2020.
And of the nine million notices some 7.4million was related to stimulus payments.
“Because of the pandemic and how quickly we had to get payments out to people due to legislation, this whole process had to be adjusted,” an IRS spokesperson added.
“The advanced tax credits were paid out immediately which normally would take weeks, even months to process before being sent out.”
Experts have since warned that the worst thing people can do if they get a letter from the IRS is do nothing – especially as they fail to send vital info to payees.
“One of the biggest issues we’re having is the reconciliation of stimulus payments,” Dan Herron, a Certified Financial Planner and CPA with Elemental Wealth Advisors, told CNBC.
“The IRS is sending out balance due notices with no calculation or explanation analysis.”
Furthermore, for those that don’t respond within 60-days of receiving the notice, the adjustment is final and the IRS can start collections.
Additionally, Americans can lose the right to file a petition in the U.S. Tax Court.
In total, it is reported than 5million taxpayers were sent a math error notice this year without the 60-day language being included.
As a result, the IRS resending some letters with clear language, and is restating the time you have to respond as a result of the error.
However, much to the dismay of recipients, taxpayers have reported having a tough time getting a hold of a representatives.
During the tax season of 2021, the IRS received more than 167 million phone calls,
But, just 9 per cent connected to a live individual.
The huge mess is unfolding roughly a month after millions of Americans received the third batch of the enhanced Child Tax… Brinkwire Brief News.