The IRS is mailing letters to some taxpayers who claimed the 2020 recovery rebate credit and might be getting a different amount than expected. The first and second Economic Impact Payments (EIPs) were advance payments of the 2020 credit. When the IRS processes a 2020 tax return claiming the credit, it determines the eligibility and amount of the taxpayer’s credit based on the 2020 tax return information and the amounts of any EIP previously issued. If there’s a mistake, the IRS will calculate the correct amount, make the correction, and continue processing the return, which may cause a slight delay.
If you receive one of these letters, please forward all pages to research the discrepancy and determine if a response is necessary to correct the IRS calculations. As a reminder, the IRS will never call you without sending a letter first.
