Rc’d letter fr IRS about RRC on 2020 return. Have no idea what this is. Can not reach IRS after trying several days. What does this letter mean?
The letter from the IRS probably is stating that you indicated on our 2020 federal tax return that you did NOT receive a stimulus payment and therefor the amount that you did not receive was entered on the Form 1040 Line 30 as a Recovery Rebate Credit.
However, the IRS removed the credit from your tax return because the IRS shows that the stimulus payment was sent to you. By removing the credit this reduces your federal tax refund or increases the taxes owed.
Go to the IRS website for your tax account to see what the IRS has sent to you for stimulus payments - https://www.irs.gov/payments/view-your-tax-account
If you never received the stimulus payment shown on your account then have the IRS put a trace on the payment. Go to this IRS website for how to start a trace - https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-f-p...
Basically it means you said you did not get all of the first 2 stimulus payments in advance and asked for the missing amount as a credit on the return form 1040 line 30.
If you claimed a missing stimulus payment on your return but the IRS took it off you have to ask the IRS. They think they already sent it to you. Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.
How to put a trace on a missing 1st or 2nd Stimulus payment. IRS for Payment Issued but Lost, Stolen, Destroyed or Not Received
See question F3 here, you can expand it to see how to put a trace on it.