IRS Recovery Rebate Credit Confusion - Transcript Shows 12/30/24 Issue Date But CP-21B Says Check Coming in 2-3 Weeks

I received a CP-21B notice from the IRS dated January 6th, 2025, but my transcript shows an issue date of December 30th, 2024. The notice says "Changes to your 2021 Form 1040" and shows I'm due a refund because they corrected my Recovery Rebate Credit based on "recent tax laws, rulings, or regulations." The letter is from the Department of the Treasury, Internal Revenue Service, Mail Stop C1 6525, Kansas City MO 64999-0025. It says I should receive a refund check within 2-3 weeks as long as I don't owe other taxes or debts they're required to collect. They mention the refund amount may include interest, which would be taxable income for the year I receive it. The notice gives me options if I don't agree with the changes - call 800-829-8374 to review my account with a representative. It also directs me to visit www.irs.gov/cp21b for more information and mentions I can search "Form 8888" for information about "Changes in Refund due to Math Errors and Refund Offsets under General Instructions for deposit rules." My bank account info is correct and verified, but I'm starting to get worried since rent is coming up soon. I was expecting a direct deposit based on my transcript date, but now I'm confused about whether they're sending a check instead of direct deposit. Has anyone else experienced delays with their direct deposits recently? The notice says 2-3 weeks for a check, but I really needed this money sooner.

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26 comments

Aisha Hussain

•8M

Hey there, I completely understand your frustration with the IRS direct deposit delay. Looking at your situation, Notice 1625 typically means there's additional verification needed for your refund. The issue date of 12/30/24 has passed, but the deposit is still pending due to this notice. I've seen this happen quite a bit lately and the delays can be anywhere from 2-6 weeks after the initial deposit date. I'd highly recommend checking out taxr.ai (https://taxr.ai) - it's this new AI tool that analyzes your transcripts and notices to give you a really specific timeline and explanation of what's going on. Way better than trying to decode the IRS website or waiting on hold for hours tbh.

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GalacticGuru

•23d

I feel your pain on this! The confusion between transcript dates and notice dates is so frustrating. From what I've seen, when you get a CP-21B notice like that, they usually default to sending a paper check even if you have direct deposit on file - something about the "corrected" refunds needing extra verification. The 2-3 week timeframe they mention is usually pretty accurate from the notice date (so mid to late January for you). I know it sucks when rent is coming up, but at least the CP-21B is good news - it means they found you're owed MORE money than you originally claimed. Hang in there! 💪

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