IRS to Send Tax Refund, Interest Checks to Taxpayers Who Filed on Time
American taxpayers who filed their federal income tax returns on time are set to receive a tax refund and interest checks this week, according to the Internal Revenue Service and the Treasury Department.
The IRS and the Treasury Department are planning to distribute interest checks with an average of $18 to about 13.9 million taxpayers.
The interest payments are for those who made a tax filing by the deadline on Jul. 15.
The move of the end date to July was due to the pandemic. It is classified as a disaster-related postponement.
With that incident, where the date is postponed from its usual Apr. 15 deadline, the IRS is required to pay interest.
Interest is paid at the legally suggested rate, adjusted quarterly. The rate for the second quarter was five percent, but after the quarter ended June 30, the rate dropped to 3 percent.
"Where the calculation period spans quarters, a blended rate applies, consisting of the number of days falling in each calendar quarter," IRS was quoted.
However, the interest payments will be issued separately from tax refunds.
Tax Refunds
Tax refunds can be an essential source of cash. The IRS said that an average return is around $2, 767.
Many might be needing a tax refund with the current coronavirus pandemic. However, this might take a long time before they get their money.
Some have to wait for months before they get their tax refunds.
Many factors might affect getting your tax refund this year. One factor is that the IRS is struggling with limited staffing, and the U.S. Postal Service has said that mail delivery could be late.
IRS said that under normal circumstances, tax refunds on taxes filed electronically could take less than three weeks to be in a bank account through direct deposit.
IRS said that it could take a few more days if you used the e-Collect service.
However, if you have not filed your taxes online, your wait will likely be much longer. Around six to eight weeks for paper return, plus several more weeks if you are waiting for a paper check.
Track Your Tax Refund
You can track your tax refund through a variety of systems the IRS has provided.
For each of these systems, you will need to give your social security number, the exact amount of the tax refund, and your tax filing status.
You can use "Where's My Refund," which is a web-based tool managed by the IRS. This will allow you to check your status for 24 hours.
"IRS2Go" can be an option as well. This is the mobile app version that is available for Android and iOS devices.
You can also use "IRS TeleTax," through 1-800-829-4477. However, you might have to ready yourself for a long wait.
Why Is My Tax Refund Late?
There could be two reasons why your tax refund is late after filing your taxes online.
First, the IRS might have a massive backlog of returns. Second, there might have been an error in your tax filing.
It could a simple error such as entering the wrong Social Security number, forgetting to sign a form or a math mistake.
Check these out:
IRS to Delay April 15 Tax Deadline for 90 Days, Are You Eligible?
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