IRS to refund penalties for 1.6 mn taxpayers who missed deadlines amid Covid-19 pandemic: Check last date to get benefits

Internal Revenue Service will refund more than a million people who got late to file their taxes during the Coronavirus pandemic. The IRS said the people only have time till September 30 to take advantage of it.

Generally, people who miss the deadlines and do not ask for an extension have to pay 25% extra of the taxes they owe. However, the IRS will suspend the late filing penalty for 2019 and 2020.

Taxpayers who have paid the fine will be refunded. The total refund amount crosses a billion and stands at around $1.2 billion. The average comes out to about $750 per individual. However, some people might get more, and others might get less.




The IRS said the taxpayers don't need to do anything if they have filed their returns. It will be erased if someone has been notified about a penalty and has not paid it. The people who have already paid the penalty will be refunded.

The refunds will take place by the end of September. If taxpayers file their returns by September 30, IRS can erase their penalties for 2019 and 2020.

Why Is This Action Being Taken?

This action is being taken to help Covid-stricken taxpayers who are struggling. The effort will also help the IRS, which has a massive backlog of unprocessed returns. The IRS said the pandemic had a remarkable effect on it.

FAQs

By when can you file returns to get the benefit of erased penalties?
If taxpayers file their returns by September 30, IRS can erase their penalties for 2019 and 2020.

Why is the IRS forgiving penalties for 2019 and 2020?
This action is being taken to help Covid-stricken taxpayers who are struggling. The effort will also help the IRS, which has a massive backlog of unprocessed returns. The IRS said the Pandemic had a remarkable effect on it.