Year-end Subsidy Rumors Abound, US Tax Bureau Warns Against Fake News

According to a report from FOX29 on Monday, December 1st, it has been widely circulated online that the IRS will be issuing new stimulus checks before the end of 2025. However, the reality is that Congress has not approved any new payments yet, and the IRS has not confirmed the distribution of any checks in the coming weeks.

It is mentioned in the report that the previous round of economic impact payments from the IRS was issued in 2021, and any future relief funds would require new legislation from Congress in order to be distributed.

In 2024, the IRS announced that for eligible taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns, the agency would automatically issue payments. Each individual could receive up to $1400.

These payments were distributed through direct deposit or checks between December 2024 and January 2025, with recipients receiving notification letters. The deadline to claim the $1400 tax credit was before April 15, 2025, and there has been no extension granted.

Former President Trump claimed on his “Truth Social” platform in November that the tariffs had generated so much revenue that “everyone (excluding high-income individuals!) will receive at least $2000 in bonuses.”

In theory, tariff revenue could be used to offset budget deficits or serve as a funding source for other purposes. While Trump’s tariff policy aimed to bring back manufacturing and create job opportunities while benefiting the country from tariffs, he did not openly promise to directly distribute the tariff revenue as “bonuses” to the citizens.

Budget experts have questioned the idea of distributing tariff dividends and recalled the short-lived government efficiency department (DOGE) dividend check proposal, which was linked to the budget cuts suggested by billionaire Elon Musk. According to the Associated Press, Erica York, Vice President of Federal Tax Policy at the nonpartisan think tank Tax Foundation, stated, “These numbers simply don’t add up.”

Even Treasury Secretary Scott Bessent seemed surprised. On November 30, during ABC’s “This Week” program, he mentioned that he had not discussed dividend issues with Trump and implied that it might not necessarily mean the government would directly issue checks. Instead, he suggested that the tax refund might appear in the form of tax cuts, benefiting individuals or families with annual incomes of $100,000 or less.

FOX 5 TV station had also interviewed NOTUS reporter Violet Jira in November about the possibility of distributing money. Jira expressed that it is difficult to predict.

Jira said, “During a White House press briefing, someone asked (spokesperson) Karoline Leavitt if the Trump administration promises to distribute these checks to the American people. Their answer was affirmative.” She added, “Since Trump posted that message on ‘Truth Social,’ we have gained more details, such as him mentioning that the checks will be issued to the middle and low-income individuals.”

She further explained, “We are still learning more details about this plan, but it is hard to say if it can actually materialize now. There are several factors causing skepticism among some people.”

In addition to this, claims circulating online about receiving a $1,702 payment or a $1,390 check can often be traced back to state-level programs, such as the Alaska Permanent Fund Dividend, but they could also originate from scam posts.

The IRS reminds taxpayers that false relief fund information is designed to steal personal information, and scammers often use fake accounts or links. The IRS will never contact taxpayers through email, text messages, or social media; they only communicate through official letters or notifications.

The IRS may follow up with a phone call after sending a notification, but they will not leave threatening prerecorded messages or request payments.

Private entities can only contact taxpayers after sending a written notification, and all legitimate collection notices should include matching taxpayer verification numbers.

To further ensure the safety of taxpayers and employees, the IRS has reduced most in-person tax audits. Taxpayers can visit the IRS website and verify information through secure online accounts or customer service.

(Reference: Report by FOX29)