Tax & Accounting News
IRS Says Corrected Taxes Resulted In 12 Million New Refunds
The Internal Revenue Service (IRS) has announced that it has corrected numerous 2020 tax returns, resulting in the issuance of 12 million new refunds.
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According to a CBS report, the tax agency primarily corrected returns that included overpayments for unemployment benefits after the passage of President Joe Biden's American Rescue Plan of 2021.
The legislation allowed for up to $10,200 of 2020 unemployment aid from counting toward taxable income but some American taxpayers had already filed prior to the law taking effect.
The IRS noted that the average refund they are sending is $1,232, totaling $14.8 billion back to taxpayers.
Those who are set to receive these delayed refunds should have received a letter from the tax agency.
On Friday, the IRS released a statement, noting, "Some taxpayers received refunds, while others had the overpayment applied to taxes due or other debts. In some cases, the exclusion only resulted in a reduction in their adjusted gross income."
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If you believe you should be receiving a refund but did not get a letter, or if you have other tax questions related to the 2020 adjustments, contact the IRS at 800-829-1040.
As part of the IRS's pledge to improve taxpayer services over the next few years, Americans can also sign into their IRS online accounts to complete many tasks related to their federal taxes.
What do you think about these tax refunds being issued now?
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