The federal government has confirmed that it will not be issuing new stimulus checks this summer, debunking circulating online rumors.
What Happened: On Friday, the internet was abuzz with rumors that the U.S. government was planning to distribute stimulus checks to certain income brackets in the near future.
However, the IRS has clarified that no such legislation has been passed by Congress, and therefore, no new stimulus checks will be issued in the upcoming weeks, reports the Associated Press.
Claims that the Internal Revenue Service and the Treasury Department had approved $1,390 stimulus checks for low- and middle-income taxpayers by the end of the summer were also debunked by the IRS.
As per the repot, an IRS official stated that this claim is false and no new stimulus checks will be distributed this summer.
Earlier this year, the IRS had announced plans to distribute about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. However, the IRS official confirmed there is no new credit that taxpayers can claim.
Republican Senator Josh Hawley of Missouri had introduced a bill in July proposing tax rebates to qualified taxpayers using revenue from tariffs instituted by President Donald Trump. However, this bill has not been passed by either the Senate or the House.
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Earlier this year, the IRS announced that it would distribute $2.4 billion to taxpayers who failed to claim on their 2021 tax returns a Recovery Rebate Credit, a refundable credit for individuals who did not receive one or more COVID-19 stimulus checks. The maximum amount was $1,400 per individual.
Individuals who had not yet filed their 2021 tax return were required to do so by April 15 in order to claim the credit. According to an IRS official, no new credit is currently available for taxpayers to claim, reports the outlet.
Previous stimulus payments were made possible only through legislation passed by Congress. For instance, the relief checks issued during the COVID-19 pandemic were authorized under three major laws: the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the COVID-Related Tax Relief Act, and the American Rescue Plan Act.
Why It Matters: The rumors of new stimulus checks had sparked hope among many taxpayers who are still grappling with the economic fallout of the COVID-19 pandemic. The clarification from the IRS, however, has put these hopes to rest.
The absence of new stimulus checks could potentially impact consumer spending, which is a key driver of the U.S. economy.
The proposed bill by Senator Hawley, if passed, could provide some relief to taxpayers, but its future remains uncertain.
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