- The IRS announced this week that it will send a new payment to nearly 14 million Americans.
- The money is due to the payment of interest generated by individual tax refunds
- The beneficiaries of the payment of interest must pay taxes on that money received
He Internal Revenue Service The IRS this week announced a new payment to nearly 14 million Americans for interest earned on individual tax refunds, according to Los Angeles Times.
The IRS indicated that the average payment will be $ 18 and will be sent to taxpayers who have paid their taxes after April 15 or are still owed a refund.
This new extra payment is intended to alleviate the economic burden on taxpayers due to the COVID-19 pandemic, as the IRS postponed the deadline to file the 2019 tax return until July 15. The traditional deadline was April 15.
Photo: Twitter.
–
The delay in the payment date meant that the IRS held for longer than normal the refund money that will be sent to Americans. During the three months, the money of the taxpayers who later filed the return earned interest, now the law requires that it be returned.
Likewise, the IRS indicated that the interest generated had been calculated according to a basis that is legally prescribed and that is adjusted on a quarterly basis. At 5 percent for the quarter ending June 30 and at 3 percent for the current quarter ending September 30.
Likewise, the IRS indicated that those taxpayers who receive their refunds via deposit will obtain the interest payment in the same account. Everyone else will receive a check with a notation that will say “INT Amount”.
Interest payments will be made only to individual taxpayers, not to companies as stipulated by law.
Likewise, the IRS reported that the interest payment is taxable, so benefited taxpayers must present it on their returns for next year.
Filed Under: IRS Extra Money
–
