IRS Refunding $1.2B in Late-Filing Penalties; Here’s How to Collect

Published by FOX Business | September 12, 2022

IRS: Most late-filing refunds will be issued by the end of September

The 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 time is running out for taxpayers to collect the money.

Nearly 1.6 million filers will automatically receive refunds or credits worth a collective $1.2 billion – an average of $750 per person.

There are just a few weeks left to qualify for the relief. In order to receive the money, Americans need to file their individual tax returns by Sept. 30, 2022.

Typically, the IRS charges individuals who file returns late without an extension a failure-to-file penalty – an extra 5% per month on the unpaid amount, which can add up to 25% of the tax due. But the tax-collecting agency is waiving that fee for many individuals and businesses who filed returns for 2019 and 2020 late.

“The penalty relief issued today is yet another way the agency is supporting people during this unprecedented time. This penalty relief will be automatic for people or businesses who qualify; there’s no need to call.”

–IRS Commissioner Chuck Rettig

Eligible tax returns include individual, corporate, estates and trusts, the IRS said. People who have been fined but who have not yet paid the penalty will see it eliminated, while individuals who already paid the late-file fee will get a refund or credit.

A majority of the refunds will be issued by the end of September, the agency said.

Continue Reading

Powered by WishList Member - Membership Software

Scroll to Top
Malcare WordPress Security