IRS: Most Late Filing Refunds Will Be Issued By the End of September
Internal Revenue Service is sending refunds to more than a million Americans who filed their taxes late in the early days of the COVID-19 pandemic – but the time for taxpayers to collect money is running out.
About 1.6 million filers would collectively receive a refund or credit of $1.2 billion automatically — an average of $750 per person.
There are only a few weeks left for relief. In order to receive the money, Americans need to file their personal tax return By 30 September 2022.
Generally, the IRS charges individuals who file late returns without an extension a failure-to-file penalty—an additional 5% per month on the unpaid amount, which can add up to 25% of the tax payable. Is. But the tax collecting agency is waiving that fee for many individuals and businesses filing late returns for 2019 and 2020.
“The penal relief issued today is another way the agency is supporting people during this unprecedented time,” IRS Commissioner Chuck Rattig said in a statement last month. “This penalty relief will be automatic for those or businesses that qualify; there is no need to call.”
Qualified tax returns include individual, corporate, estates and trusts, the IRS said. Those who have been fined but have not yet paid the penalty will see it expire, while those who have already paid the late-file fee will get a refund or credit.
The agency said most refunds would be issued by the end of September.
The declaration comes as the IRS continues its way through its backlog of unprocessed tax returns. As of August 12, the IRS still had 9.3 million unprocessed personal tax returns from 2022, including about 7.6 million paper returns.
The plethora of unprocessed returns stemmed from disruptions related to the pandemic, including a worker shortage, the arduous task of administering millions of stimulus checks, and the adoption of other tax changes across sectors. COVID-19 Relief PackageSuch as increased child tax credit payments.
The IRS has set a goal of reaching a “healthy” level of inventory by the end of 2022.
If you’re still waiting for your refund, you can track its status using the IRS. where is my refund tool.
Credit: www.foxbusiness.com /