IRS has announced that all legally permitted first and second rounds of Economic Impact Payments (EIP) have been issued, and the office is now turning its “full attention” to the 2021 filing season.
Beginning in April 2020, the IRS and treasury department began delivering the first round of EIP’s within two weeks of the legislation. According to the revenue service, it has issued more than“160 million EIPs to taxpayers across the country totaling over $270bn”, while simultaneously “managing an extended filing season”.
EIP’s are part of US governments coronavirus aid relief and was designed to reduce the financial burden of Covid-19 on individuals.
It is believed since congress enacted the Covid related Tax Relief Act of 2020, the IRS has delivered more than 147 million EIPs in the second-round totaling over $142bn.
IRS said: “If individuals didn’t receive a payment or if they didn’t receive the full amounts they may be eligible to claim the Recovery Rebate Credit and must file a 2020 tax return.
“Eligibility for and the amount of the Recovery Rebate Credit are based on 2020 tax year information while the Economic Impact Payments were based on 2019 tax year information. For the first Economic Impact Payment, a 2018 return may have been used if the 2019 was not filed or processed.”