Christmas gift? At least 1 million taxpayers will receive $1,400 as a refund

The Internal Revenue Service (IRS) announced that 1 million taxpayers will receive $1,400 in the coming weeks. In the midst of the holiday season, the news from the IRS will add one more reason for households reached by this refund to celebrate.

As for the source of these payments, it turns out that the IRS found that many eligible taxpayers did not claim the Recovery Refund Credit on their 2021 tax returns.

Benefited taxpayers will not have to do anything to receive the money, since it will be automatically sent to their bank accounts or to their homes via check.

"The IRS continues to work hard to make improvements and help taxpayers. These payments are an example of our commitment to go the extra mile for taxpayers. 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 through a statement.

"To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it," he added.

In total, the IRS will return an estimated $2.4 billion in this refund. Payments will begin to go out in the next few weeks and could begin to land in accounts in early January.

As for those who did not file a tax return in 2021, they may be eligible if they file that return by next April 15.

"If the taxpayer closed their bank account after filing their 2023 tax return, they do not need to take any action. The bank will return the payment to the IRS and the refund will be reissued to the address of record," detailed from the IRS in a statement.