The IRS recently sent out letters to folks who haven’t yet filed their 2021 tax returns – or hadn’t yet filed at the time the IRS prepared their mailing lists. This letter is labeled “Letter 6550” and its purpose is to encourage filing a 2021 tax return for anyone who might qualify for one of three credits: Recovery Rebate Credit, Child Tax Credit, and Earned income Credit.
In general, the IRS wants everyone to know that they might be able to get a credit (and thus, a refund) even if they don’t have a filing requirement because their income is low.
Some of our clients have received this letter because they usually qualify for one or more of the credits, but they haven’t yet filed OR their returns were filed late in the year, presumably after the IRS designated them as a recipient of Letter 6550.
If you’re a client and you’ve already filed for 2021, you can disregard the letter. Carrie considers these credits when she prepares your tax returns, so if you qualified for any of them, you got them on your 2021 returns. If you’re a client who usually qualifies for one or more of the credits but you haven’t filed yet, please get us your information as soon as possible and we’ll prepare and file your 2021 returns.
If you know someone who doesn’t usually file because their income is low enough that they don’t have a filing requirement, you may want to pass the information on to them. The IRS has set up a website where people can file a simple tax return that will allow them to claim these credits; there are also links to websites on which they can file a full tax return at no charge, potentially increasing their refund.