To claim any tax refunds they have not yet received, including the $1,400 stimulus payment, individuals are being advised by the Internal Revenue Service (IRS) to submit their 2021 taxes before the deadline.
This benefit is available to around one million Americans. It is important to keep in mind that the $1,400 Recovery Rebate Credit was created to assist Americans during the COVID-19 outbreak.
Millions of qualified taxpayers, however, failed to file their 2021 taxes and were not compensated.
Penalties for submitting a $1,400 stimulus request
There could be serious repercussions for anyone who tries to get the money again.
Taxpayers who seek to cash the stimulus check in error a second time may discover that the IRS restricts their attempts in its system, an IRS representative told the site.
However, if someone is able to get the $1,400 check again, they run the danger of the IRS asking for the money back, along with fines and interest.
Michael Ryan, a financial expert and the creator of MichaelRyanMoney.com, was advised on the issue and stated: “If someone has already received the third stimulus payment or claimed it on a previous tax return, trying to claim it twice could backfire. We’re talking about a 20% penalty right off the bat. That’s equivalent to $280 for a $1,400 claim! And then there’s the daily compounding interest until the money is paid back. Oof!”
The expert went on to say that if a taxpayer is reported for making false statements, the IRS may permanently record the information on their file and their returns will be subject to a closer examination.
“Future filings could be subject to additional scrutiny, refunds could be delayed and it could even affect other legitimate credits you try to claim,” he added.
State of South Carolina to Implement 3.99% Income Tax Rate for All by 2026
Additionally, he urged taxpayers to avoid jeopardizing their financial future by filing false claims. “The IRS does not play around with these matters, and the penalties can affect your tax situation for years,” he said.
The IRS normally only lets you claim a refund or credit within three years, so if you file and claim the Recovery Rebate Credit by the deadline of April 15, which is the last chance to receive this payment, you might still be eligible for a refund even if you haven’t filed your 2021 tax return.
Don’t try again if you’ve already gotten it.
This Information has been sourced from Marca.
Leave a Comment