There is a possibility that you will get a small amount of surprise when you check your Bank account. IRS has recently announced that they will be paying almost 14 million Taxpayers. The amount will be small and the transaction would take at least a week.
The average amount of the payment is 18$ and most of the individuals will be getting paid the same with Their tax returns. In simple words, it will be directly transferred to the respective bank account. The updates regarding the transaction will be sent through mails.
People might be wondering about this idea and maybe thinking why did the federal government is paying through interest? As per the law, if IRS could not able to pay the required money then they will be held responsible to complete the whole process.
Which means if a person is supposed to get some amount from the taxes and have already filed the deadline. Then if the government is delaying in payment, the receiving amount’s interest will automatically increase. Which will beneficial for the people during this pandemic.
Burden Upon IRS
Generally, this issue occurs with few people who pay the taxes. But this year, there have been shortages of staff during this Pandemic. The IRS became much slower than before in returning the funds because their Agencies were much busier in issuing the Stimulus Check as well.
This year the tax filing deadline was pushed a little forward back to July 15, due to Pandemic. Apparently, the IRS became responsible for a certain amount of interest to the people who didn’t receive their amount at the April 15 deadline. The people who filled after April 15 were also included in this.
The official rates of the payment were made by the IRS. Only 5% was compounded between April 15 to June 30. Later it reduced to 3% which was compounded from July 1 onwards.
These payments are unluckily not available to every taxpayer. The IRS has issued the guidelines which said if the person has filed a full tax return before April 15, then the person is not eligible. The IRS has strictly said the people that federal is not responsible for the tax dollars after the original deadline.