In more relief for Americans, there are at least 1.5 million who re about to get hundreds of dollars in tax refunds from the Internal Revenue Service (IRS). This agency just made an announcement that they will waive late-filing penalties automatically for 1.6 million tax payers. Also, taxpayers who were punctuaal with their fees will get over $1.2 billion in refunds or credits to all of them.
The average refund will amount to about $750 per tax payer. As many of tax payers are still impacted by the pandemic, they are still in dire need of economic aide that the IRS is trying to offer them. The agency is trying to focus on processing backlogged tax returns and taxpayer correspondence in order to make the 2023 filing a lot smoother than this year’s tax filing.
Who qualifies for these IRS Tax Rebates?
The folks who qualify for these IRS Tax Rebates don’t need to apply as the payments are automatic and will be sent out during the final days of September. This applies to folks and businesses who filed certain 2019 or 2020 returns late and were sanctioned with the failure to file penalty. Such a punishment is typically taxed at a rate of 5% per month.
But the rate increases to 25% of that same unpaid tax if a federal income tax return doesn’t arrive in time. In order to qualify for returns, the ones eligible in 2019 need to have been filed by August 1, 2020. The returns from 2020 must have been filed by August 1, 2021.
Due to both of these deadlines falling on a weekend, the 2019 return will still be considered if you managed to file it by August 3, 2020. The one from 2020 will still be considered if you filed it by August 2, 2021. In order to qualify for this one, all eligible income tax returns must be filed on or before September 30, 2022.