More than 1.6 million taxpayers in the United States will receive refunds or credits totaling $1.2 billion dollars, which works out to an average of $750 dollars per person
The Internal Revenue Service (IRS) will send refunds to more than 1 million taxpayers who were fined for not filing their tax returns on time in 2019 and 2020, all this during the crisis of the covid-19 pandemic. The average refund Elected Taxpayers can receive is estimated to be $750. The IRS will deliver this money until the end of this month of September.
When the pandemic began in March 2020, many taxpayers suffered from various financial problems, such as unemployment and reduced income, which made their 2019 tax return difficult. These problems carried them until 2021, on their 2020 tax return. At that time, although the IRS postponed the legal time for tax filing, it also continued with its usual penalties.
Generally, taxpayers who file late without an extension can expect to pay penalties of up to 25% of the amount of tax they owe. However, for the 2019 and 2020 declarations, the agency will suspend the penalties for people who filed late or still have to send their taxes.
The relief is intended to cover individual taxpayers, banks and employers required to file information returns; and filers of several international informative declarations.
“In addition to providing relief, this step is designed to allow the IRS to focus its resources on processing delinquent tax returns and correspondence from taxpayers to help return to normal operations for the 2023 filing season,” the agency mentioned in a statement.
To date, the IRS is overwhelmed and behind in its tax services, because the agency was responsible for sending stimulus checks and tax credits, which have interrupted the flow of tax return processing.
Taxpayers who already paid a penalty will automatically receive refunds, the IRS said Wednesday. Most refunds will be delivered by the end of September.
More than 1.6 million taxpayers will receive refunds or credits totaling $1.2 billion, an average of $750 per person.
If you still have any pending tax returns from 2019 or 2020, you must file them before September 30.
According to the tax agency, taxpayers do not need to do any extra paperwork to access the relief. People who have been fined but have not yet paid will have their penalty removed, while those who have already paid the fine will get a refund or credit.
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