IRS announces $1.2 billion in refunds and credits to certain taxpayers with delinquent returns
Time to Read: 2 minute
The Internal Revenue Service (IRS) announced that it will apply refunds and credits to those who have filed late returns in 2019 and 2020; according to the agency, there are at least 1.6 million people who will receive money in the coming weeks
Taxpayers with late returns for reasons attributable to the covid-19 pandemic and who were fined are now eligible for a refund or tax credits , confirmed the Internal Revenue Service (IRS).
The taxpayers who will benefit from the announcement are those who were fined for late filing their returns in 2019 and 2020 , fiscal years that were affected by the confinements forced by the covid-19 infections.
According to the IRS, the taxpayers who will benefit are those individuals or businesses that were fined for filing taxes or information outside the established deadlines.
“In addition to providing relief to both individuals and businesses affected by the pandemic, this step is designed to allow the IRS to focus its resources on processing delinquent tax returns,” the IRS said in a statement.
The IRS detailed that it plans to distribute $1.2 billion dollars in penalties that were paid by taxpayers and that will now be returned to at least 1.6 million eligible people.
The agency disclosed the announcement of the refunds and credits in a notice posted on its website.
What are the rules for receiving relief
The IRS highlighted that eligible taxpayers should not go through any process to request a refund of the penalties that were paid, since the refunds are automatic.
According to the notice that was released, most of the refunds will begin to reach taxpayers from the end of next September.
In addition to the economic benefit, the IRS announced that taxpayers who have not filed their declaration still have until September 30 to do so and be eligible for refunds.
In addition to the above, taxpayers who have not paid their fines may do so with reduced surcharges, according to their statement.
In the case of information declarations that companies must file and that are also delayed, the tax office indicated that they can also benefit from refunds.
However, they must comply with the requirement of having filed their returns before August 1, 2020, in the case of 2019 returns, and before August 1, 2021, in the case of 2020 returns.
However, not all taxpayers with fines are eligible, since those who have an offer in compromise or a closing agreement determined by a court, for a fraudulent declaration, will not be able to apply for economic relief.