Did you receive an unexpected refund from the IRS? Last week the IRS began issuing interest payments to individual taxpayers who received an overpayment on their taxes after April 15th. The IRS typically only issues interest payments on timely-filed refund claims issued more than 45 days after April 15th. Additional interest is being paid on 2019 overpayments as part of Coronavirus tax relief.
Most taxpayers receiving interest payments will have them direct deposited into their bank accounts and all others will receive a check. The average amount of interest being issued is $18 based on interest rates at 5% through June 30th and 3% through the third quarter of 2020.
Keep in mind that if you are one of the 13.9 million taxpayers receiving interest, these payments are taxable on your 2020 tax return. The IRS will be sending out 1099-INT Forms to any taxpayers who received more than $10 of interest.
For more information, check out the IRS’ website, Coronavirus Tax Relief: 2019 tax refund interest or their August 18th news release with addition details.
If you have further questions, contact your accountant.
Keep in mind that if you are one of the 13.9 million taxpayers receiving interest, these payments are taxable on your 2020 tax return. The IRS will be sending out 1099-INT Forms to any taxpayers who received more than $10 of interest.
For more information, check out the IRS’ website, Coronavirus Tax Relief: 2019 tax refund interest or their August 18th news release with addition details.
If you have further questions, contact your accountant.