Last-minute tax filers could receive surprise IRS bonus
Tax agency will pay interest on some 2019 refunds
National Economic Council Director Larry Kudlow says there will be a ‘healthy discussion’ about another possible round of coronavirus stimulus after the July 4 recess.
Some Americans may still be waiting to receive their 2019 tax refunds from the IRS – or still waiting to file altogether – and that could mean their checks might be a little bit larger upon receipt.
The tax agency announced this week that it would pay interest on individual 2019 refunds for returns filed by July 15 – the delayed tax deadline. Interest will “generally be paid from April 15, 2020 until the date of the refund,” the IRS said.
Interest payments might be received separately from the refund itself.
GOT YOUR STIMULUS CHECK BUT NOT YOUR TAX REFUND? IRS SAYS TO EXPECT DELAYS
The agency’s interest rate in the second quarter, ending June 30, is 5 percent per year – compounded daily. For the third quarter, which ends Sept. 30, it is 3 percent per year.
THE IRS SAYS CORONAVIRUS ECONOMIC IMPACT PAYMENTS CAN BE SEIZED FOR THIS REASON
As previously reported by FOX Business, due to coronavirus-related safety precautions and guidelines, the IRS said certain services – including processing paper returns – are “extremely limited or suspended until further notice.”
The agency noted that while it is not currently processing paper returns, it is working on electronic returns, issuing direct deposit refunds and accepting electronic payments. It urged all taxpayers to file electronically if possible.
If you have already filed a paper return, however, do not file a second return electronically. Your paper return will be processed at a later date.
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The Trump administration extended this year’s tax deadline to July 15 due to the pandemic.
Meanwhile, the IRS was tasked with issuing the economic impact payments not only during tax season but also at a time when its resources – including both funding and staffing – are on the decline.
The agency has begun recalling staffers to resume some operations. It is unclear when it will begin processing paper returns again.