What is an Economic Impact Notice?

SHARE THIS POST NOW:

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print

Any bookkeeping, business or tax article contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor can it be used to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

After a taxpayer has been issued an Economic Impact Payment, the IRS is required to mail an Economic Impact Notice to the recipient at their last known address. This notice provides information about the amount of the Economic Impact Payment, how it was made, and how to report any payment that wasn’t received.

If you’ve received some mail recently from the Department of Treasury, it may be an Economic Impact Notice. You may even have received multiple notices. Let’s take a look at the different types of notices you may have received:

  • Notice 1444, Your Economic Impact Payment. The IRS mailed this notice within 15 days after the first payment was issued in 2020. Some people received another Notice 1444 if the IRS corrected or issued more than one payment in the first round. Taxpayers who received a Notice 1444 but did not receive their first payment should review the frequently asked questions (FAQs) for instructions on what to do if their first payment is lost, stolen, destroyed, or has not been received. People should keep this letter with tax year 2020 records.
  • Notice 1444-A, You May Need to Act to Claim Your Payment. The IRS mailed this letter last year to people who typically aren’t required to file federal income tax returns but may have been eligible for the first Economic Impact Payment. People who didn’t get a first and second Economic Impact Payment or got less than the full amounts may be eligible to claim the 2020 Recovery Rebate Credit and must file a 2020 tax return even if they don’t usually file a tax return.
  • Notice 1444-B, Your Second Economic Impact Payment. The law that authorized the second payment gave the IRS more time to mail Notice 1444-B after the second payments were issued. This means people likely received their second payment several weeks before Notice 1444-B arrived. Taxpayers who received Notice 1444-B but didn’t receive the second payment should read the FAQs about what to do if their second payment is lost, stolen, destroyed, or has not been received. People should keep this letter with tax year 2020 records.
  • Notice 1444-C, Your 2021 Economic Impact Payment. The IRS is mailing this letter to people who received a third Economic Impact Payment. People should keep this letter with tax year 2021 records.

What to do When You Receive an Economic Impact Notice

Most people will not need to contact the IRS or take any further action and should simply file the notice with their tax records. The IRS cannot issue replacement copies of these notices, so it is important to keep any IRS notices that you receive regarding Economic Impact Payments with your other tax records. Taxpayers who don’t have their notices can view the amounts of their Economic Impact Payments through their online account.

Need assistance with bookkeeping, individual tax, and/or cross-border taxes? Contact FAS today! Contact us at admin@fas-accountingsolutions.com or at 713-855-8035.

SHARE THIS POST NOW

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print

Power up your business today!