More than 1.5 million Americans, who paid penalties for missing tax filing deadlines, will get a refund, the IRS confirmed

Omaha, Nebraska – More than a million people in the United States who filed their tax returns late in the early days of the COVID-19 outbreak are now receiving refunds from the Internal Revenue Service (IRS). According to information provided by the administration on Monday, taxpayers have until September 30th to take advantage of this reprieve.

People who submit their tax returns late without asking an extension are often subject to penalties that can reach up to 25 percent of the amount of taxes that they are still required to pay. However, the government has decided to defer fines for late filers for the 2019 and 2020 tax years. According to the Internal Revenue Service (IRS), refunds will be automatically issued to taxpayers who have previously paid a penalty.

It is expected that more than 1.6 million taxpayers will receive refunds or credits totaling $1.2 billion, which works out to an average of $750 per individual, although some may get more and some may get less.

According to the Internal Revenue Service (IRS), taxpayers who have already submitted their forms do not need to take any further action. Those who have previously paid a penalty will be eligible for a refund or credit, while those who have been notified of a fine but have not yet paid it will have the penalty removed from their record entirely. According to the agency, the vast majority of the reimbursements will be distributed by the time September comes to a close.

Penalties can still be waived for taxpayers who have not yet submitted their taxes for the tax years 2019 and 2020, provided that those taxpayers file their returns by the deadline of September 30, 2022. This leaves those who were late in filing with just over two weeks to complete any outstanding tax returns.

According to the Internal Revenue Service (IRS), this initiative is a move to “assist struggling taxpayers afflicted by the COVID-19 outbreak.” The agency, which is battling to dig itself out of a vast backlog of unprocessed tax returns, might also benefit from the initiative, which has the potential to improve the agency.

The pandemic has had a “unprecedented” effect on the tax agency, the IRS said in a notice, highlighting the agency’s role in distributing federal stimulus payments and taking other steps to help taxpayers weather the pandemic. The notice also highlighted the agency’s role in distributing federal stimulus payments.

If late filing fines were eliminated, it would be easier for the Internal Revenue Service (IRS) to focus on reducing the mountain of tax paperwork that it has accumulated and getting back to normal in time for the tax season of 2023.

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